IRBO - IRBO: AI Is An Uncertain Option Therefore A High Premium

2024-06-20 07:53:56 ET

Summary

• IRBO ETF now more skewed towards large cap, AI-related stocks with high valuations.
• Disillusionment in AI market may mean some of the current revenue is non-recurring for the industry.
• The basis for major LLMs is training to be convincing, not correct.
• We think the complexity of a topic like AI makes it almost inevitable that it will be a lot more challenging than expected to bring it to the hoped-for level.
• IRBO, while somewhat exposed to AI, isn't really an AI ETF, though. In general, its mixed mandate has made its management fee unattractively expensive.

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