Trillions AI Mania Is Coming for ETFs
Jun 8, 2023
Dave Mazza, chief strategy officer for Roundhill, and Rebecca Sin, an ETF analyst for Bloomberg Intelligence, discuss the hype versus reality of AI in the ETF industry, exploring approaches and challenges faced by AI-powered funds. They also explore the impact of AI on ETFs, identifying companies with unique AI exposure, discussing the potential of AI in interviews and its influence in the tech sector, and sharing their favorite ETF tickers.
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Two Types of AI ETFs
- AI ETFs can track AI companies or utilize AI for investment decisions.
- Tracking AI companies is a thematic bet, while AI-powered ETFs use algorithms.
AI ETF Challenges
- AI-powered ETFs face similar cost challenges as traditional managers.
- High turnover and fees can hinder outperformance, despite advanced algorithms.
Chat GPT's Rapid Growth
- Chat GPT gained 100 million users in two months, compared to Uber's six years.
- This highlights the rapid adoption and growing interest in AI.