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Feb 07, 2021
4 ETFs Focused on Growth in Artificial Intelligence

4 ETFs Focused on Growth in Artificial Intelligence

The role of Artificial Intelligence (AI) in the modern economy is growing exponentially, and its growth is likely to continue rapidly into the future. A recent study conducted by Markets and Markets suggests that the AI industry will be worth over $16 billion by 2022, which would mark a compound annual growth rate (CAGR) of 62.9% over the next five years. Yes, you read that figure correctly—annualized growth of over 60% each year for the foreseeable future!

With AI’s rapid growth and adoption across many industries and for many purposes, corporations are literally racing to research and develop AI for their business, for fear of being left behind. As money pours into the economy for the development of AI, it follows that the companies who are actively developing new AI and applications in robotics could stand to benefit greatly.

As a result, there have been a few ETFs that have sprung up recently to track companies active in AI development and robotics, which allow investors to potentially gain exposure in their portfolios to AI without having to take-on company-specific risk. To note, I do not personally recommend any of the 4 ETFs below and investors should be advised that any investment in the equities markets involves risk of loss. I am simply pointing out that these 4 ETFs exist within the realm of AI, but interested investors should conduct due diligence on their own before investing.

The AI ETFs I mention below meet each of these three criteria:

  • The companies within the ETFs are involved in developing new products, services, technological improvements in scientific research related to AI
  • The funds have a 25 percent portfolio exposure to companies that spend money on AI research and development expenses;
  • The funds use AI methods to choose individual securities to be included in the fund.

With that, here are the four ETFs.

ETF #1: BUZ

The Buzz US Sentiment Leaders tracks the BUZZ NextGen AI US Sentiment Leaders Index, which follows the 75 most-discussed holdings through news articles, blogs, and social media sources, all with a minimum market cap requirement of $5 billion. Some of the ETFs top holdings are ones you might recognize, such as Micron Technology (MU), Tesla (TSLA) and Amazon (AMZN).

ETF #2: BOTZ

The Global X Robotics & Artificial Intelligence Thematic ETF offers exposure to firms involved in the global automation and robotics industries. Some of the stocks in the ETF are in markets such as hardware, software, and management of automated products and services, which can include autonomous cars, 3D printers, navigational systems, and medical devices.

ETF #3: ARKQ

The Industrial Innovation ETF primarily focuses on advancements in autonomous vehicles, robotics, 3D printing, and energy storage technology that enhances productivity and reduces costs. According to its website, by 2035 over $12 trillion will be invested in automation and robotics.

ETF #4: ROBO

The Robo Global Robotics and Automation Index has been around the longest of the 4 ETFs, with an inception date going back to 2013. This ETF tracks companies involved in robotics and automation, much like the others. One of its top holdings is iRobot (IRBT).

Related Ticker: ARKQ

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


Momentum Indicator for ARKQ turns positive, indicating new upward trend

ARKQ saw its Momentum Indicator move above the 0 level on October 02, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned positive. In 73 of the 79 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Moving Average Convergence Divergence (MACD) for ARKQ just turned positive on October 02, 2026. Looking at past instances where ARKQ's MACD turned positive, the stock continued to rise in 40 of 46 cases over the following month. The odds of a continued upward trend are 87%.

ARKQ moved above its 50-day moving average on October 02, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for ARKQ crossed bullishly above the 50-day moving average on September 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 15 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.

Following a +2.19% 3-day Advance, the price is estimated to grow further. Considering data from situations where ARKQ advanced for three days, in 291 of 327 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.

Bearish Trend Analysis

The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.

The 50-day moving average for ARKQ moved below the 200-day moving average on September 01, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where ARKQ declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 86%.

ARKQ broke above its upper Bollinger Band on September 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for ARKQ entered a downward trend on September 24, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Notable companies

The most notable companies in this group are NVIDIA Corp (NASDAQ:NVDA), Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN), Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), Broadcom Inc. (NASDAQ:AVGO), Tesla (NASDAQ:TSLA), Advanced Micro Devices (NASDAQ:AMD), Caterpillar (NYSE:CAT), Deere & Company (NYSE:DE).

Industry description

The investment seeks long-term growth of capital. The fund is an actively-managed exchange-traded fund that will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of autonomous technology and robotics companies that are relevant to the fund's investment theme of disruptive innovation. Substantially all of the fund's assets will be invested in equity securities, including common stocks, partnership interests, business trust shares and other equity investments or ownership interests in business enterprises. The fund is non-diversified.

Market Cap

The average market capitalization across the ARK Autonomous Technology & Robotics ETF (ARKQ) ETF is 592.09B. The market cap for tickers in the group ranges from 455.4M to 5.53T. NVDA holds the highest valuation in this group at 5.53T. The lowest valued company is KDK at 455.4M.

High and low price notable news

The average weekly price growth across all stocks in the ARK Autonomous Technology & Robotics ETF (ARKQ) ETF was 15%. For the same ETF, the average monthly price growth was 35%, and the average quarterly price growth was 668%. SNPS experienced the highest price growth at 22%, while KDK experienced the biggest fall at -19%.

Volume

The average weekly volume growth across all stocks in the ARK Autonomous Technology & Robotics ETF (ARKQ) ETF was -6%. For the same stocks of the ETF, the average monthly volume growth was -21% and the average quarterly volume growth was -48%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 70
P/E Growth Rating: 57
Price Growth Rating: 52
SMR Rating: 66
Profit Risk Rating: 63
Seasonality Score: 19 (-100 ... +100)
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General Information

Category MidCapGrowth

Category
Mid-Cap Growth
Address
ARK ETF Trust155 West 19th Street, 5th FloorNew York
Phone
212-426-7040
Web
www.ark-funds.com
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