00:00:00
5 years returns which is around
00:00:02
17.94% almost 18% of returns these are
00:00:06
yearly returns right in the Last 5 Years
00:00:08
this ETF has generated this data is as
00:00:10
of end of December 2024 semiconductor
00:00:14
and semiconductor equipment by 15% and
00:00:16
so on and so
00:00:18
forth AI boom in 2024 has made Nvidia
00:00:22
world's second most valued company
00:00:25
NVIDIA had a market cap of around $1.2
00:00:28
trillion by the end of 2023 and this
00:00:31
valuation went up to $ 3.28 trillion by
00:00:35
the end of 2024 which is almost 2.75
00:00:40
times increased in the valuation in just
00:00:42
one year alone now some of you might be
00:00:44
wondering whether this AI is a hype or
00:00:47
whether this is actually giving any Roi
00:00:49
on AI Investments or not ai ai ai a ai
00:00:54
ai ai ai hype cycle what you see on my
00:00:58
screen is the management commentary by
00:01:00
world's largest semiconductor company
00:01:02
tsmc and what this company is saying is
00:01:04
that using AI this company has gained
00:01:07
around 1% in their productivity
00:01:09
converting it into $1 billion US of
00:01:12
saving in terms of the real money now
00:01:14
you might say that Rahul you are cherry
00:01:15
picking the data here I absolutely get
00:01:17
that that's why if you look at this
00:01:18
article where a survey was done with
00:01:20
2,500 global leaders as per this survey
00:01:23
74% companies generated Roi on their AI
00:01:27
Investments but more importantly 86% %
00:01:30
companies were able to increase their
00:01:32
revenues by almost 6% using AI so the
00:01:35
data is telling us that AI is not just a
00:01:37
hype it is definitely increasing the
00:01:39
value for companies who are investing in
00:01:41
AI right now now if you're an investor
00:01:43
and want to invest in AI related themes
00:01:46
this video is perfect for you because in
00:01:48
this video I'm going to speak about
00:01:50
three ETFs that invest in AI companies
00:01:53
as a broader theme you won't find this
00:01:55
content anywhere on YouTube so get ready
00:01:57
for the massive learning in the next 10
00:01:58
to 12 minutes
00:02:02
before I speak about AI ETFs in my view
00:02:05
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in AI tools Technologies and strategies
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let me now take you to the first AI ETF
00:03:12
so the first ETF is aiq which is global
00:03:15
X artificial intelligence and Technology
00:03:18
ETF so first of all what is global X so
00:03:20
Global X is a member of Mirai assets all
00:03:23
of us know miray assets it's a South
00:03:25
Korean asset management company we are
00:03:26
all very much aware of meray assets so
00:03:29
it's a r Ed ETF in my view now if you
00:03:31
look at the past returns of this
00:03:33
particular ETF on my screen you will see
00:03:35
the Last 5 Years returns which is around
00:03:38
17.94% almost 18% of returns these are
00:03:41
yearly returns right in the Last 5 Years
00:03:43
this ETF has generated this data is as
00:03:46
of end of December 2024 if you look at
00:03:49
since Inception which is this ETF
00:03:51
started in 2018 this ETF has delivered
00:03:54
around 16% returns in the US dollar
00:03:57
terms so if you speak about rupees
00:03:59
because rupe has been depreciating in
00:04:01
the last 10 years or so if you look at
00:04:03
the rupe wise returns these returns are
00:04:05
likely to be much higher than what
00:04:07
you're seeing on my screen because the
00:04:08
returns you're seeing on my screens is
00:04:10
based on the US Dollars also please
00:04:12
understand past returns does not
00:04:14
guarantee you the future returns there
00:04:15
is always a market risk it does not
00:04:17
guarantee that you're are going to get
00:04:19
these returns but at least we need to
00:04:20
know how much of returns the ETF has
00:04:22
generated in the last few years now aiq
00:04:25
is a global ETF please understand this
00:04:27
very very important because if I talk
00:04:28
about where this ETF ETF is investing
00:04:30
this ETF is investing in companies all
00:04:33
across the globe so for example here
00:04:35
they have invested in companies that are
00:04:37
based in US almost 70% allocation
00:04:39
followed by China 8.3% Ireland 3.8%
00:04:43
Canada 3.5% and so on and so forth this
00:04:45
data is as of end of December 2024 now
00:04:48
this ETF is listed on Nasdaq exchange
00:04:51
which is a US exchange I hope you know
00:04:53
that but more importantly this ETF is a
00:04:55
passive ETF it tracks an index called
00:04:57
index artificial intelligence and Big
00:04:59
Data index very very popularly known
00:05:01
index in the world of AI and big data
00:05:03
and this index as of November 2024 was
00:05:06
tracking almost 84 companies all over
00:05:09
the world again I'll show you the list
00:05:10
of the companies as well the total asset
00:05:12
under management for this ETF is around
00:05:16
2.48 billion us so it's a huge fund it
00:05:19
is not a small fund again the data is as
00:05:21
of November 2024 this ETF gets
00:05:24
rebalanced every 6 months so there will
00:05:26
be companies that will be discarded from
00:05:27
the ETF there will be companies that
00:05:29
will be added into this ETF based on
00:05:31
this index because it is a passive index
00:05:33
the expense ratio is around 68% which is
00:05:36
not too high in my view now what you see
00:05:38
on my screen is the top 10 holding of
00:05:40
this ETF as of 6th of January 2025 you
00:05:43
will note that number one is Tesla 4.49%
00:05:47
broadcom 3.89% Service now Netflix
00:05:50
Salesforce these are some of the
00:05:52
companies that this ETF has invested but
00:05:54
one thing you will note here is that
00:05:56
unlike many other ETFs this ETF is not
00:05:59
highly concentrated on one or two
00:06:01
companies as you can see for example
00:06:02
Nvidia is only 3.28% here while you will
00:06:05
find many other ETFs that have high
00:06:07
concentration in one or two companies
00:06:09
like Nvidia Apple Etc now comes the
00:06:11
million dooll question how does this ETF
00:06:14
actually selects company for investment
00:06:16
so for that have a look at my screen you
00:06:17
will see broadly two categories so if a
00:06:20
company falls into any of these two
00:06:22
category category number one is any
00:06:24
company that is doing AI development or
00:06:26
any company that is selling AI as
00:06:28
software as a service and the second
00:06:29
category is where companies are working
00:06:31
in AI Hardware space or Quantum
00:06:34
Computing now there may be a lot of
00:06:35
companies that are falling into category
00:06:37
one or Category 2 it doesn't mean that
00:06:39
this ETF is going to invest in all those
00:06:41
companies in fact they have a selection
00:06:42
criteria so what is the criteria
00:06:44
companies market cap needs to be more
00:06:46
than2 billion if they are in category
00:06:48
one and more than $500 million of market
00:06:51
cap if they are in Category 2 they also
00:06:53
have conditions like the average daily
00:06:55
turnover needs to be at least $2 million
00:06:57
us of trading in terms of the value of
00:06:59
the trade right in both categories in
00:07:01
the last 6 months also they look at few
00:07:03
countries that they have narrowed down
00:07:05
for example US Canada Taiwan South Korea
00:07:07
and so on so there is a strict criteria
00:07:09
that this ETF is following because it is
00:07:11
a passive ETF following a particular
00:07:13
index that I talked about now if you
00:07:15
look at the industry exposure of this
00:07:17
ETF you will see that it is exposed by
00:07:19
around 40% to the softwares and services
00:07:21
industry followed by semiconductor and
00:07:23
semiconductor equipment by 15% and so on
00:07:25
and so forth again you can see this data
00:07:27
by yourselves just pause the video have
00:07:29
a look at this sectoral background as
00:07:31
well as of end of December 2024 now if I
00:07:34
talk about valuation and profitability
00:07:36
as well from a price to earnings
00:07:38
perspective 2023 it was trading at a PE
00:07:40
of around 38 by the end of 2024 the
00:07:43
valuations have cooled down it has come
00:07:45
down to 28 from a Price to Book value
00:07:47
perspective also the value has come down
00:07:49
in 2024 from a risk perspective if I
00:07:51
look at the beta you will see that it is
00:07:53
slightly more volatile than S&P 500 so
00:07:56
it is 1.25 times more volatile than S&P
00:07:59
500 from a beta perspective NASDAQ 100
00:08:02
almost 1.07 so all in all this ETF is
00:08:05
more volatile than the mainstream
00:08:07
indexes mainly because this is a
00:08:08
sectoral or a thematic ETF now comes the
00:08:11
million dollar question Rahul what are
00:08:12
the options to invest in this particular
00:08:14
ETF as it is listed in the NASDAQ
00:08:16
exchange so there are three options
00:08:18
number one is you need to have a demat
00:08:20
account with a US broker which is based
00:08:22
in US investing in US Securities number
00:08:24
two is that you might need to open an
00:08:26
account with a Indian app that
00:08:28
facilitates investment in the US third
00:08:31
option is miray assets Global X
00:08:33
artificial intelligent and Technology
00:08:35
ETF fund of fund so what this fund of
00:08:37
fund does is it takes the money from
00:08:39
Indian investors and put this money into
00:08:41
the ETF that I just spoke about so that
00:08:43
also is an option where you won't need
00:08:45
to open a dmat account with any us
00:08:47
broker or do not need to have an account
00:08:49
with an Indian app so third option is
00:08:51
for purely Indian investors I've given
00:08:53
you lot of information about this
00:08:55
particular ETF if you have further
00:08:57
questions let me know in the comments
00:08:58
but a humble request requ EST to you is
00:09:00
please do not take this as a
00:09:02
recommendation my intent here is to tell
00:09:04
you the investment options that are out
00:09:06
there and give you some datab bagged
00:09:08
analysis please do not take that as a
00:09:09
recommendation in fact if you like this
00:09:11
analysis hit the like button let me know
00:09:13
in the comments a simple thank you it
00:09:14
will motivate me to come up with such
00:09:16
content for you at zero cost also you
00:09:19
can consider joining my YouTube member
00:09:20
Community because I post almost on a
00:09:22
daily basis about various assets
00:09:24
including stocks mutual funds ETFs and
00:09:27
many other assets the feedback of this
00:09:28
community has been excellent you can
00:09:30
simply go to my channel and press on
00:09:32
join button or you will find the link in
00:09:34
the description or in the Pinn comments
00:09:36
with that let me now walk you through
00:09:37
ETF number two the second ETF is
00:09:40
arkq which is Arc autonomous technology
00:09:44
and robotic ETF so this ETF is an
00:09:46
actively managed ETF rather than a
00:09:48
passively managed ETF and it is managed
00:09:50
by Kathy Woods Arc investment firm that
00:09:53
you might be aware of now this being an
00:09:55
active ETF also please understand the
00:09:57
geographical concentration of this TF is
00:09:59
more concentrated in the US so for
00:10:02
example have a look at this screen you
00:10:03
will see that more than 90% of their
00:10:05
Investments are based in North America
00:10:07
only 7% in Asia Pacific so as compared
00:10:10
to the aiq that I spoke about in the
00:10:11
previous section this one is more
00:10:13
concentrated in North America now a few
00:10:16
basic details about this particular ETF
00:10:18
because this is a actively managed ETF
00:10:20
the expense ratio is slightly higher 75%
00:10:23
the funds overall asset under
00:10:25
managements are slightly lower it is
00:10:27
around 780 million
00:10:29
as compared to more than2 billion we saw
00:10:32
in aiq now if you look at the past
00:10:34
returns of this ETF in the last 5 years
00:10:36
it has managed to give early almost 14
00:10:38
to 15% sort of a return and since
00:10:40
Inception it is around
00:10:42
12.57% this is an absolute US dollar
00:10:45
terms but if you would factor in the
00:10:46
rupee depreciation these numbers will be
00:10:48
slightly higher than what you see in
00:10:50
terms of the US Dollars now as of 6th of
00:10:53
January 2025 have a look at the types of
00:10:55
company this fund has invested in this
00:10:57
is Tesla at number one almost 15% of net
00:11:02
funds into Tesla and this is why I said
00:11:04
this is more concentrated ETF versus
00:11:07
what we saw which was more Diversified
00:11:09
aiq fund this one is definitely more
00:11:11
concentrated Tesla is around 15%
00:11:13
followed by many other Ai and robotic
00:11:15
companies you can see the list here top
00:11:17
10 listing is on my screen so in terms
00:11:19
of Technology where is this ETF
00:11:21
investing in have a look at my screen
00:11:22
you see autonomous Mobility around 45%
00:11:25
Battery Technology around 11%
00:11:27
intelligent devices 10% so this is is
00:11:29
more like a futuristic sort of ETF is
00:11:32
what I can see in terms of the
00:11:33
technology that it is investing in if
00:11:35
you read the objective of this fund it
00:11:37
clearly states that their objective is
00:11:39
to invest at least 80% of their funds
00:11:42
into domestic and foreign Securities
00:11:44
which are into autonomous technology and
00:11:46
robotic companies that is where the
00:11:49
company is focusing on unfortunately I
00:11:51
could not find the valuation data as
00:11:53
well as the risk data for this ETF but
00:11:55
if I manage to find it later on I'm
00:11:57
going to add the notes so make sure that
00:11:58
you also checking the pin comments or
00:12:01
the descriptions of this video because I
00:12:02
don't know when you're watching this
00:12:03
video hopefully I'll be able to find
00:12:05
that data as well and I'll add that into
00:12:06
the notes as well so far if you're with
00:12:08
me request you to hit the like button
00:12:10
while I move to ETF number three the
00:12:13
third ETF that I want to cover is an ETF
00:12:15
called Bots which is global X Robotics
00:12:18
and artificial intelligence ETF this is
00:12:20
also from Global X backed by meray
00:12:22
assets now coming back to the difference
00:12:24
between Bots and aiq the big difference
00:12:26
between them is that Bots follow a
00:12:29
different index altogether it follows an
00:12:31
index called index Global Robotics and
00:12:34
artificial intelligence thematic index
00:12:36
that's why you will see a big difference
00:12:38
between aiq and Bs although they both
00:12:41
are from Global X now let me walk you
00:12:43
through some of the differences and also
00:12:45
some of the key insights about this
00:12:46
particular ETF Point number one is the
00:12:48
geographical investment breakdown have a
00:12:50
look at my screen you will see United
00:12:51
States here is only 53% while Japan has
00:12:54
got the second share which is around 26%
00:12:58
of the investments in Japanese companies
00:13:00
followed by Switzerland Finland and so
00:13:01
on so this is much more Diversified from
00:13:04
a geographical perspective as compared
00:13:06
to aiq now second point is that because
00:13:09
this is a passive ETF very much similar
00:13:11
to aiq this one also has expense ratio
00:13:13
of only 68% but the number of Holdings
00:13:16
you see here is only 46 versus I think
00:13:19
around 80 plus in aiq so this is much
00:13:21
more concentrated when it comes to the
00:13:23
number of companies that particular
00:13:25
index holds assets under management
00:13:27
slightly more than aiq around 2 .6
00:13:29
billion us if I now speak about the past
00:13:32
returns of this particular ETF Last 5
00:13:35
Years it has managed to give around
00:13:37
99.48% which is lower than the aiq again
00:13:39
please do not take past returns as the
00:13:41
future predictions have a look at few
00:13:43
other important parameters of this ETF
00:13:45
but overall from a past returns
00:13:47
perspective it has given lesser returns
00:13:49
than aiq now if I speak about the top 10
00:13:51
holding of this ETF as of 6th of January
00:13:54
2025 you will see Nvidia has got the
00:13:57
maximum allocation of around 14 % Then
00:14:00
followed by intuitive surgical almost
00:14:02
10% followed by many other good
00:14:04
companies here but again you will note
00:14:05
here that one company has got a quite a
00:14:08
high concentration because the way index
00:14:11
is constructed is very different from
00:14:13
what we saw in aiq also the selection
00:14:15
criteria of the companies in this
00:14:17
particular ETF is very different from
00:14:19
aiq and that is why I'm presenting you
00:14:20
these flavors so that you can learn more
00:14:22
and if you're learning please like the
00:14:24
video right coming back to how this
00:14:25
particular ETF selects the companies it
00:14:27
looks at themes like indust industrial
00:14:29
robots and automation unmanned vehicles
00:14:31
and drones non-industrial robotics
00:14:34
artificial intelligence so these are the
00:14:36
themes that if a company is operating in
00:14:38
it is becoming eligible but again this
00:14:40
is not the only criteria there is
00:14:42
another filter criteria for example the
00:14:44
minimum market cap needs to be at least
00:14:45
$300 million us must be listed in the
00:14:48
developed market like us Japan
00:14:50
Switzerland and so on again you can read
00:14:52
these criteria these are the strict
00:14:54
criteria that the ETF follows before
00:14:56
selecting a company into this ETF one
00:14:58
very very important important point that
00:14:59
I want you to understand about this
00:15:01
particular ETF is the volatility have a
00:15:03
look at my screen you will see almost
00:15:05
last 8 to 10 years of chart here it is
00:15:08
highly volatile ETF huge downturn here
00:15:10
followed by a massive Peak postco again
00:15:13
a huge draw down again followed by a
00:15:16
uptrend here so this is a hugely
00:15:18
volatile ETF and it is not definitely
00:15:20
for short-term Traders I would not like
00:15:22
to time any of the ETF Investments ETFs
00:15:25
and index funds are mainly for long-term
00:15:27
wealth generation and if I really show
00:15:29
you the data as well have a look at this
00:15:30
data you will see from a beta
00:15:31
perspective it is highly volatile 1.51
00:15:34
times S&P 500 from a NASDAQ 100
00:15:37
perspective 1.23 again if you compare
00:15:39
this data with aiq that I spoke about
00:15:41
earlier this is a more volatile ETF as
00:15:44
the data suggests from a valuation
00:15:46
perspective 2023 it was trading at a PE
00:15:48
of around 50 in 2024 it has come down at
00:15:51
around 39 from a PB perspective again it
00:15:54
has come down 4.54 in 2024 but the p and
00:15:57
PB ratio is still on the higher side if
00:16:00
you compare this with aiq finally I
00:16:02
could not find a fund of fund that is
00:16:04
feeding into this particular ETF so the
00:16:06
only option to invest in this particular
00:16:08
ETF is either using a dmat account based
00:16:10
in us or having a account with an Indian
00:16:14
app that facilitates investment in the
00:16:16
US so in this video I've covered a lot
00:16:18
of details about these three ETFs and in
00:16:20
my view that would have given a lot of
00:16:22
good knowledge about investing you would
00:16:24
have got upgraded from your investment
00:16:26
approach perspective as well and if you
00:16:27
want to upgrade yourself El for AI
00:16:29
career related skills as well please
00:16:31
check out growth schools handson AI
00:16:33
training that I spoke about earlier the
00:16:36
link is in the description or in the pin
00:16:37
comments grab your seat now only first
00:16:40
1,000 registrations are absolutely free
00:16:43
I hope you enjoyed this video if you did
00:16:45
press the like button let me know in the
00:16:46
comments a simple thank you I'll see you
00:16:48
in my next video Until then keep rocking
