Our selection of the best AI funds is listed above, along with the selection criteria used to select companies to include in each fund.
This criterion has led to significant differences between portfolios, with some funds focusing on large-cap US stocks (such as Microsoft and NVIDIA), while others focus on mid-cap stocks such as SentinelOne and C3.ai. is placed.
Brewin Dolphin’s Moore commented: “Investors should have a clear vision of the breadth of a technology ‘conglomerate’ like Microsoft.
“In my view, it is wise to stick with the more established companies with significant investment capabilities such as Apple, Alphabet, Microsoft, Experian and RELX. It’s a winner in its field, it’s generating cash and it’s investing.” ”
Hutchinson also points to the risks of investing in more speculative AI companies. “You have to be careful if your fund includes small- and mid-cap companies. Stable stock market movements. ”
Another option is whether to invest in AI technology developers as well as adopters.
Sanlam’s Ford said: “Rather than focusing solely on companies that provide AI-enabling technology, we strongly recommend investing in funds that can invest in companies that use and deploy AI.
“This means a broader set of opportunities is set. Some of the most interesting AI opportunities are in non-tech areas such as healthcare. We have developed a fully autonomous tractor that was not possible.
“Technology that makes it possible [semiconductors and related areas] Diversifying exposure to more stable growth in areas such as healthcare makes sense, as these areas are among the most cyclical and therefore most volatile areas of the market. increase. ”
Hutchinson also advises investors to look for possible overlaps with other funds in their portfolios. “While the overall AI ETF is relatively heavily weighted in U.S. equities, some products that also focus on robotics themes may find more appropriate exposure to Japanese equities.”
Investors seeking ESG (environmental, social and governance) investments may have concerns about the ethics and potential abuse of AI technologies such as facial recognition. With this in mind, some funds are using his ESG criteria to screen potential AI investments.
