2024-07-01 00:17:14 ET
Summary
- AIQ ETF, focused on AI technology, has not shown unique AI characteristics in its portfolio and suffers from high technology concentration.
- The growth rate of AIQ has slowed and is below its 3-year average, indicating a possible pullback in the future.
- It is recommended to sell AIQ into the current price strength and consider other tech index ETFs like QQQ for better performance.
Introduction
With Q2 earnings season coming soon, investors will start to face the reality check on the AI growth story, which has been the major catalyst driving the big-tech stocks to make all-time highs this year. Many big-tech heavy funds have been the major beneficiary of the AI bandwagon and their stock prices have been performing very well. One of such funds is Global X Artificial Intelligence & Technology ETF ( AIQ ). AIQ has AI baked in its name, making it more attractive from an ETF marketing perspective....
Read the full article on Seeking Alpha
For further details see:
AIQ: No Real AI Alpha With Heavy Tech Concentration Facing Slowing Growth