Looking to Invest in Artificial Intelligence (AI) ETFs? Here are two NYSE Listed Options

Robo Global Robotics & Automation ETF (ROBO)

Debuting on October 21st, 2013, ROBO was the first robotics and automation focused ETF to come to market, with just over $1.37 billion in AUM right now. This ETF tracks the proprietary ROBO Global Robotics and Automation Index, which currently offers exposure to 79 holdings across 14 developed and emerging markets, spanning small, mid, and large-cap stocks.

57% of ROBO's holdings fall into the "application" classification, which as its name suggests deals with the integration and deployment of automation, robotics, and AI in industries like healthcare, logistics, automation, agriculture, and manufacturing. The remaining 43% deal with companies that develop and sell these technologies.

In terms of sector representation, U.S. stocks hold the lion's share at a 44% weighting, followed by Japanese equities at 21%. Interestingly enough, ROBO features an almost even 42% and 44% split between large and mid-cap stocks respectively, with the rest allocated towards small caps. This stands in contrast with some other AI focused ETFs that are dominated by large caps.

iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)

IRBO represents one of BlackRock iShares' many thematic offerings. In this case, the ETF focuses on companies it defines as being "at the forefront of robotics and artificial intelligence innovation." This is achieved by tracking the NYSE FactSet Global Robotics and Artificial Intelligence Index, which is equal weighted.

IRBO debuted on June 26th, 2018, making it newer than ROBO. It also sports a lower AUM at $438.6 million, making it less popular so far. However, the ETF still has plenty to offer. The ETF's equal-weight index results in fewer U.S. large-cap stocks dominating the top holdings, and a greater allocation to Chinese and Japanese equities at 12.5% and 10.5% respectively.

In terms of sector representation, the majority of IRBO's exposure sits in technology at 55.3%, followed by communications and industrials at 18.6% and 14% respectively. One notable advantage IRBO has over ROBO is with regards to fees. With an expense ratio of 0.47%, the ETF is half as expensive as ROBO, which charges 0.95%.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.