The debate about whether AI is a bubble or not continues. But spending continues with the large hyperscalers expected to increase AI Capex spend by 50% to US$450billion next year.
There is also a great interview I did with Sean Kelly Parity Wealth Managers in which he points out that the Magnificent 7 are actually a Magnificent 70 as they own multiple huge businesses within the single listing.
For example Alphabet is more then just Google search. Investors also get; YouTube, Ads & AdSense, Chrome, cloud, Google Maps, Waze, Fitbit, Nest, Waymo and so the list goes. All which could be large cap stock if listed separately.
With this in mind how does one know who the winners will be and where shareholder value will be created? The easiest way to via an ETF and the JSE has a lot of tech listed ETFs with some more AI focused, either by intention or just from the size of the stocks within the universe and the JSE has four that meet our AI requirement.
Note three are actively managed, one is passive.
- ETF5IT* from 1nvest. This includes the +70 tech stock within the S&P500
- SYG4IR from Sygnia. This is an Active ETF from the days of the 4th Industrial Revolution excitement.
- SYFANG also from Sygnia. Also active, FANG was Facebook, Amazon, Netflix and Google, the preciser to the Mag7.
- EASYAI from EasyETFs. Another active ETF focusing on stocks driving AI innovation.
I hold the ETF5IT as I like the passive broad nature of the ETF and use it as a satellite position because I already have a lot of ttech/AI in my diverse global ETFs.
Below is the one year comparison chart of all four.
JSE Listed AI ETFs
All charts by KoyFin | Get 10% off your order
ETF blog
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.
