Not simply home fund managers like Evolve and CI are coming into the Canadian AI ETF scene. Invesco Canada affords INAI, which tracks a namesake index for a 0.35% administration charge. The index is actively managed by the “Morningstar Fairness Analysis Subsequent Era Synthetic Intelligence Committee” which critiques and assigns publicity scores for holdings, making it much less passive than some may count on.
The index focuses on 4 sub-themes (generative AI, knowledge and infrastructure, software program and companies) and consists of notable international holdings like Taiwan Semiconductor Manufacturing. INAI isn’t foreign money hedged however does provide a Canadian dollar-hedged model, INAI.F.
Lastly, World X ETFs (previously Horizons) truly affords not one, however two AI thematic ETFs: AIGO and RBOT.
AIGO, which made its debut on Could 14, 2024, tracks the Indxx Synthetic Intelligence & Massive Information Index by wrapping a U.S. World X listed AI ETF in a fund of funds construction. It costs a 0.49% administration charge and isn’t foreign money hedged. AIGO’s underlying U.S. ETF at the moment holds firms like Nvidia, Qualcomm, Broadcom, Netflix, Meta and Tencent, showcasing a broader semiconductor and communications focus.
RBOT, against this, has been round for much longer, having listed in 2017, and has collected about $55 million in property. It costs a 0.45% administration charge, which quantities to a 0.64% MER together with a 0.04% buying and selling expense ratio (TER). RBOT tracks the Indxx World Robotics & Synthetic Intelligence Thematic Index, which focuses extra on utilized robotics and automation fairly than simply software program, together with healthcare firms like Intuitive Surgical and international producers like Yaskawa Electrical Corp.
Investing in any of those ETFs is easy. Merely enter the ETF’s ticker in your brokerage software, resolve on the variety of shares you want to purchase and at what worth (utilizing a restrict order is advisable), and be affected person as your transaction completes.
Whereas the speedy growth of the AI sector and the flurry of recent AI ETFs in Canada are undeniably thrilling, I can’t assist however draw parallels with the dot-com bubble of the late Nineteen Nineties, significantly the rise and fall of Cisco Programs.
At its peak, Cisco briefly surpassed Microsoft because the world’s most useful firm, with a market cap nearing $500 billion, using the wave of the web and networking growth.
