iShares Future Exponential Technologies ETF

XT

Market cap $3.71B

Artificial intelligence remains a key driver of stock market success. These three AI ETFs have been successful in the past, and have underperformed the market in the last month.

The tech sector has been far choppier in recent weeks, and the new year might see more of the same as volatility continues working its way through parts of the tech scene.

Financial Engines sold 1,452,015 shares, decreasing its position value by $127.13 million. The transaction represented a 0.19% change in 13F reportable assets under management (AUM).

AI-fueled record Black Friday spending and soaring e-commerce traffic may lift AI-focused ETFs like IYW, AIQ, FDN, XT and BOTZ amid strong tech and online retail demand.

OpenAI's partnership spree with AMD, Oracle & NVIDIA fuels AI boom -- ETFs like IYW, FTEC, FDN, AIQ & XT stand to gain.

With U.S. markets enjoying renewed bullish momentum, investors seeking an easy way to participate in the rally can look to exchange-traded funds (ETFs).

I recommend a 60/40 split: 60% in IXN for large-cap US tech exposure 40% in XT for diversification and emerging growth. IXN captures current tech momentum with US giants like Nvidia, Microsoft, and Apple, but carries concentration and valuation risks. XT offers global, diversified exposure to mid- and small-cap innovators, healthcare, and industrials, hedging against large-cap overvaluation.

The S&P 500 tops 6,400 for the first time as large-cap tech and AI-fueled gains propel the index. Tap AI-based ETFs like AIQ and ARKQ.

Whether you're a dividend investor or a growth investor, there can be an exchange-traded fund (ETF) out there to meet your specific investment goals. There are many ETFs to choose from these days, which can allow you to focus on a certain strategy.

iShares Exponential Technologies ETF focuses on companies driving technological innovation across various sectors, offering diversified exposure to high-growth potential industries. The ETF's investment thesis is centered on capturing the growth of exponential technologies, including AI, robotics, and biotechnology, which are expected to transform industries. The fund looks appealing due to its diversified portfolio, evidential capacity to out-perform (albeit not since January 2021), and alignment with long-term technological trends.