Artificial intelligence (AI) has rapidly shifted from being a futuristic concept to one of the most powerful forces shaping the global economy.
From semiconductors and data centres to software and autonomous vehicles, billions are being invested into AI development. For everyday investors, exchange traded funds (ETFs) listed on the ASX provide a simple way to gain exposure to this megatrend without having to pick individual winners.
Here are three ASX ETFs that could be worth considering for those wanting to ride the AI wave.
Image source: Getty Images
Betashares Nasdaq 100 ETF (ASX: NDQ)
The Betashares Nasdaq 100 ETF offers exposure to the 100 largest non-financial stocks on the Nasdaq exchange. This includes some of the biggest names driving AI adoption, such as Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Nvidia (NASDAQ: NVDA).
These stocks are not only using AI to improve their businesses but are also selling the infrastructure and tools powering AI growth. For investors, the Betashares Nasdaq 100 ETF provides diversified exposure to the global tech giants at the centre of this megatrend.
Betashares Asia Technology Tigers ETF (ASX: ASIA)
The Betashares Asia Technology Tigers ETF gives investors access to the leading technology names across Asia. Its portfolio includes Tencent (SEHK: 700), Alibaba (NYSE: BABA), Taiwan Semiconductor Manufacturing Company (NYSE: TSM), and Baidu (NASDAQ: BIDU).
In respect to the latter, Baidu has been investing heavily in AI, particularly in autonomous driving through its Apollo Go robotaxi service, which has already begun commercial operations in multiple Chinese cities. Alongside Tencent's AI-driven gaming and cloud platforms, Alibaba's cloud and commerce infrastructure, and TSM's leadership in chip manufacturing, the Betashares Asia Technology Tigers ETF has exposure to some of the most advanced and commercially active AI projects outside the United States.
Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)
Finally, the Betashares Global Robotics and Artificial Intelligence ETF is arguably the most direct way to invest in AI on the ASX. The fund holds a portfolio of stocks at the cutting edge of robotics, automation, and AI software. This includes Nvidia, Intuitive Surgical (NASDAQ: ISRG), and ABB (SWX: ABBN).
AI is set to reshape industries ranging from manufacturing and logistics to healthcare and finance. By combining exposure to robotics hardware and AI software, the Betashares Global Robotics and Artificial Intelligence ETF provides a diversified play on two of the most exciting and disruptive technologies of the next decade. This fund was recently recommended by the team at Betashares.
