Artificial intelligence is this year’s hot investing theme, and technology and semiconductor funds are up sharply.
The funds also are lagging behind the S&P 500 and Nasdaq Composite, and, according to Morningstar, their respective peers. The AI Powered ETF takes a page from actively managed methods used by quantitative or systematic investors, says Komson Silapachai, a partner at Sage Advisory. The fund’s struggles may be due to active management underperforming indexes in general, not the fund’s methodology or process.
Newsletter Sign-up The biggest misconception he sees with retail investors’ interest in AI is that they want a pure-play fund that only invests in companies exclusively creating the technology. “The reason it doesn’t exist is because there’s a lack of consensus, and AI is very widespread within different economic use cases,” he says.