AIQ: Solid ETF, But A Victim Of Tech Stock Correlation

Sungarden Investment Publishing
Investing Group Leader

Summary

  • AIQ is a great example of an ETF that does what it is supposed to do, but that doesn't make it a great fund.
  • It ends up looking like other, more well-known index ETFs because of how correlated tech and growth stocks have become.
  • AIQ's valuation is reasonable, and the portfolio is constructed in line with its mission.
  • But I can't get excited about it, since it has a history of mimicking S&P 500 and Nasdaq-like ETFs. Thus, not much alpha to be had.
  • Sungarden Investors Club members get exclusive access to our real-world portfolio. See all our investments here »

Too many options, one choice

syolacan/E+ via Getty Images

If I were back in business school creating one of those "SWOT" analyses on Global X Artificial Intelligence & Tech ETF (AIQ), I could fill all four boxes, easily. AIQ's strength is that it targets

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Sungarden Investment Publishing
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I'm Rob Isbitts, founder of Sungarden Investment Publishing. I run the new investing group Sungarden Investors Club, a community dedicated to navigating the modern investment climate with humility, discipline, and a non-traditional approach to income investing. I've been charting investments since the 1980s, and I spent decades an an investment advisor and fund manager before semi-retiring in 2020. Now, this investing group is my focus. The markets tells us a story…we just have to listen! I teach subscribers how to do that.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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