With the rapid development of artificial intelligence technology, more and more mutual fund companies have begun to invest in artificial intelligence related industries. Choosing the best mutual funds that focus on artificial intelligence can help investors participate in the future growth of AI. This article analyzes several excellent mutual funds investing in artificial intelligence in 2020, looking at their investment strategies, major holdings, past performance and risks.
ARK Autonomous Technology & Robotics ETF has the highest proportion of artificial intelligence holdings
ARK Autonomous Technology & Robotics ETF (ARKQ) is an excellent choice for investors looking for mutual funds focused on artificial intelligence and robotics. As of December 2020, artificial intelligence companies account for 14.4% of ARKQ’s assets, which is the highest percentage among similar funds. Major AI holdings include Tesla, Trimble and Nvidia. ARKQ has demonstrated strong historical performance but also has relatively high risk.
BlackRock Advantage Global Fund provides balanced exposure to artificial intelligence
BlackRock Advantage Global Fund (BROAX) has about 5.3% of its assets invested in artificial intelligence companies. While less focused than ARKQ, BROAX provides more balanced sector exposure. The fund also invests 11.2% in software stocks which can indirectly benefit from AI adoption. With its diversified approach, BROAX may suit more conservative investors looking for AI opportunities.
Fidelity Select Software & IT Services Portfolio taps into AI potential of software companies
As a software and IT services focused fund, Fidelity Select Software & IT Services Portfolio (FSCSX) is well-positioned to capitalize on artificial intelligence trends. Major holdings Microsoft and Adobe both invest heavily in AI for their products. While FSCSX is not exclusively an AI fund, its software exposure means it stands to gain as companies integrate AI capabilities into their offerings.
Artificial intelligence funds carry higher risk but offer strong growth potential
Compared to traditional mutual funds, those focused on high-growth areas like AI tend to carry more risk. However, they also offer greater return potential over the long run. When combined with other funds as part of a diversified portfolio, AI-focused mutual funds can be an excellent way for investors to gain exposure to a transformative technology trend.
Mutual funds investing in artificial intelligence represent a way for investors to participate in the growing influence of AI across the economy. By selecting funds like ARKQ, BROAX and FSCSX that invest in AI leaders or adjacent spaces, investors can tap into future opportunities while managing risk through diversification.