Two AI ETFs Promising Long-term Growth In The Face Of A Booming Sector

Artificial intelligence (AI) is not just a buzzword; it's an economic powerhouse with the potential of adding an estimated $15 trillion to the worldwide economy. With its relatively recent advances, AI is still burgeoning in investment circles, holding a wealth of opportunities for the future.

As changes ripple through the tech world, discerning the AI companies with staying power can be tricky for investors. However, Exchange-traded funds (ETFs) offer a diversified investment approach in AI, sparing the need for betting on individual stocks.

For those looking to invest in AI's bright future, here are two AI-related ETFs to consider holding onto for decades.

A broad ETF with a shining track record

The Invesco QQQ Trust tracks the Nasdaq-100 and is home to top industries like technology, healthcare, and consumer discretionary stocks. This ETF is tech-heavy, with around 60% of its portfolio in technology firms. Its major holdings include prominent AI contributors such as Microsoft, Nvidia, Amazon, and Meta Platforms, making up about a quarter of its assets. These corporations have secure foundations and are making significant strides in AI ventures, offering solid AI exposure.

Historically, the Invesco QQQ has outdone both the S&P 500 and the Nasdaq Composite in the past decade. While past performance doesn't guarantee future success, the trend suggests that backing big tech innovators might continue yielding favorable long-term growth.

A concentrated and dynamic AI ETF

The newly launched Roundhill Generative AI & Technology ETF provides an approach focused on the emergent AI market, especially generative AI technologies. This actively managed fund does not follow a set index and instead relies on fund managers to pick stocks that show promise.

With heavy investments in Nvidia and Microsoft, the fund has 50 holdings and aims for substantial long-term returns. Since its inception, this ETF has performed well compared to benchmarks like the S&P 500 and the Nasdaq Composite. While actively managed funds typically entail higher fees, with an expense ratio of 0.75%, the performance so far has been on par with the Nasdaq Composite.

In an era where PwC predicts that AI could contribute more than $15 trillion yearly to the global economy by 2030, either of these funds could serve investors well over the long haul.

investment, technology, growth