ROBO Global Artificial Intelligence ETF

THNQ

Market cap $278M

TMX VettaFi is rapidly establishing itself as a key index partner, leveraging a strategy of product expansion and strategic acquisitions.

Electricity demand is on the rise globally thanks to electrification, adoption of electric vehicles, wider use of air conditioning, and the rise of AI-related data centers. In the U.S., data centers are expected to drive roughly half of the overall increase in power demand to 2030, according to the International Energy Agency (IEA).

ROBO Global Artificial Intelligence ETF (THNQ) is rated a strong sell due to high valuations and weak fundamentals among its top holdings. THNQ's portfolio is heavily exposed to companies with negative or minimal free cash flow, excessive stock-based compensation, and significant shareholder dilution. Despite strong past performance and diversification, THNQ's average P/FCF ratio for the top holdings is over twice that of the NASDAQ, with inferior business quality.

Investing in AI represents one of, if not the, key themes for tech investing in the years to come. It has already made a huge contribution for investor portfolios this year after a healthy 2024.

Weekly trading in large ETFs often makes it difficult to spot a clear pattern. However, the $22 billion iShares U.S. Technology ETF (IYW) was an exception last week .According to ETF Database, IYW experienced a $2.8 billion net outflow on September 17.

TMX VettaFi is a participant in a weekly podcast called ETF of the Week. As the regular guest, I offer up a new, newsworthy, trending, or timely ETF and discuss it, unscripted, with the host, Chuck Jaffe.

AI investing has been a principal driver of portfolio performance for several quarters, boosting key mega-cap tech firms. Of course, truly investing in AI requires more than simply picking those mega-cap firms.

AI investing has been a pillar of equities investing for years now, lifting up portfolios and pushing the U.S. economy forward. Artificial intelligence is already impacting sectors from agriculture to entertainment, with far-reaching implications both in and outside of investing.

As artificial intelligence (AI) establishes itself as the disruptive theme for economies and portfolios for the decade to come, the need for strategies targeting opportunities across the value chain has become a necessity for investors.

Below, we recount highlights from constituents of the ROBO Global Robotics and Automation Index (ROBO) and the ROBO Global Artificial Intelligence Index (THNQ).  Silicon Valley's Superintelligence Sprint Ending the quarter on a (highly expensive) note, META (META) launched new, human-capital-intensive, superintelligence labs.