Top AI ETF for 2024 : Once in a Lifetime Opportunity!

if you had invested $110,000 at the beginning of 2023 with Nvidia it would have been worth over $33,000 at the end of the year artificial intelligence is just now starting to impact jobs and it's going to continue to expand and grow over the next decade that's why the latest projections have the compounding annual growth rate for AI to be 42% each year for a decade now that level of growth can't be true for every company that's tied to AI but the opportunity for making massive investment gains i

t's better now than it's been in years Cason Point meta just announced that they are spending $9 billion in 2024 to purchase 350,000 Nvidia gpus to build a new level of open- sourced Ai and that level of investment is merely the tip of the iceberg which means that there's going to be plenty of investment opportunities for the rest of us and one of the easiest ways to invest broadly in AI is via exchange traded funds or ETF so in today's video I'll cover the best AI ETF charged for growth over th

e next decade and I qualify the term best based on past performance you see I created a weighted point system across all the different AI ETF that I could find and I objectively showcase the top performers based on the past performance and how they rank with a score and of course there is no guarantee that past performance is going to equate to a sure thing for future performance but I tend to leverage history as a strong guide for my own Investments and for any of you that are interested I do h

ave a link in the description below to all the different ETF that I considered for this video and you can see how each of them ranked any ETF that had an overlap of 80% or more within their Holdings then I remove the lower ranked one from my list in order to eliminate any duplicate ETF and I want to point out right away that I am not recommending that a person invests in every single one of these ETF I know that I certainly won't and I won't expect anyone else to you'll want to see how much they

overlap with any of the existing funds that you currently have and see which one makes sense for you now I'll move on to the first ETF today which is the Invesco semiconductors with the symbol PSI which is the name suggest invest in the semiconductor industry and if you aren't aware those happen to be the chips in the brains which are used in all the different computers phones and really anything that we have that's electronic an item that I like about this ETF is that it focuses solely on us c

ompanies to provide a domestic exposure to its Investments granted they focus primarily on the small and the medium cap funds that have a little bit more volatility but they also have more room for growth when it comes to Holdings it has the top play with Nvidia but I love that some of the top companies include AMD Micron and Marvel because those are some of the Lesser spoken about companies in 2023 that I believe will have a great 2024 and for reference Micron is a memory and data storage compa

ny based out of my old hometown of Boise Idaho they have some extra room to grow given that memory prices are expected to climb this year and with Microsoft ending its support for Windows 10 that forces a lot of people to upgrade their Hardware in order to run Windows 11 and that makes companies like Micron a forced function of growth as for performance the PSI ETF had a good set of returns over the past 1 three and 5 years where it happened to have a small dividend with somewhat of a high expen

se ratio and it is telling that it has a lot of small and medium cap companies with their extreme swings in its best and its Worst Years performance this is not a fund that I'm personally invested in but I'm willing to give it a little bit more consideration seeing as how it focuses more on the domestic and smaller cap companies the next fund is qra AI enhanced us large cap momentum ETF with the ticker symbol am where this is a fund that breaks away from the others and that it leverages an AI mo

del for its security selection based on a historical algorithm of performance where it limits any single security from exceeding 10% weight and clearly it's doing something right because when you look at the top 10 Holdings it has companies like apple and Microsoft that we would expect but even companies like Eli Lily that have been in the news a lot for leveraging I for developing new drugs and this touches on a topic where I believe Pharmaceuticals are going to be seeing wild growth over the n

ext couple years because they're leveraging AI to model out new drug creation which is going to eliminate years worth of work in creating new drugs now when we shift over to look at the performance of AMOM the performance is good but it is one of the lowest of the group at the three-year and when it comes to the expense ratio it does happen to be the highest of all of today's ETF but something to consider is that AMOM had the lowest worst year performance of any other ETF meaning that it has a l

ittle more stability in its returns and if you're curious I do have a link to a spreadsheet that lists all of today's ETF with links to resources for you to research them further on your own and since I often get questions about which ETF I invest in I am listing on this spreadsheet which of these ETF I have in my own portfolio I merely want to be transparent so that you know exactly what I've prioritized for myself and I know that for some of you Dividends are a top priority because you like ha

ving the monthly cash flow but one of the best investments for monthly cash flow is having your own business can you imagine having a12 to 15% margin on your investment each month but without doing any of the work well that's where today's sponsor limits Express comes into play they work as a business venture or an investment where they create and manage an Amazon store for you essentially they pull investor funds together to buy hundreds of thousands of dollars worth of new branded products at

a discount and then they sell them on Amazon the more investors that they have the better pricing that they get on their product to make higher margins they do all the work and you share in the profits together each month both limits Express and the investor have skin in the game together one can't win without the other now I used to work at Amazon and I fully understand the model of limits Express so I'll personally take the plunge with them as an investor and I'll provide future updates on my

newsletter and if you're interested in learning more I'll have a link in the description for you to speak with Kyle one of their co-founders directly you can also check out their website in the links below the next fun is the Invesco QQQ trust series 1 ETF and given its popularity I think most of you are all aware of this fund as it invests in the nasdaq's top large cap companies now before I jump into the Holdings I do want to point out that this fund is nearly identical to the QQQ M or as it's

often referred to as the QQQ mini where the mini trades at a lower price and it has a smaller expense ratio due to how it reinvests dividends and other actions to offset its fees the triple Q trust fund has more history that I can use in my ranking system and that's why I picked it over the mini both are equally great but if you're interested the mini does have a lower expense ratio so let's take a hot minute to look at the Holdings where triple Q shines with the top Holdings with the Magnifice

nt 7 but despite its popularity it didn't rank in the highest in today's list due to its lower performance in the one year but it's still a great fund and when you look at the dividend and its expenses it isn't in the top or the bottom but it just sort of hangs up out chills right there in the middle now move on to the next fun which is Fidelity msci Information Technology index with a symbol ftec where I'm sure that many of you have seen the power of adobe's use of generative fill and where the

y can literally change the shirt a person is wearing or add or remove objects in a photo and near instantaneously they've also been touting how they're going to use AI in video editing and I can assure you that is going to be a huge hit if it's successful as for the ftec funds performance it's mostly in the middle of the pack but with those returns it is doing extremely well especially at that 5-year Mark and I do need to point out that this fund has the lowest expense ratio of the group in case

that is a priority for you I do realize that I'm going to get a few questions from viewers asking why the Vanguard vgt fund wasn't included in today's list it's because it had a 94% overlap with this fund ftec which happened to have a higher score in my ranking so for that reason I omitted vgt for the list I'm now going to follow it up with the ishares US tech Independence focused ETF with the symbol IC where it's an actively managed fund that isn't bound solely to the tech sector where it incl

udes a few different top companies like Accenture which happens to be a Consulting Group that is hyperfocused on directing companies how to implement AI strategies and automation across a broad range of areas and sectors the reality is that most companies have no idea where to begin with AI and consulting firms like Accenture will be a driving force for companies they're willing to make that level of investment as for the ietc performance it had a great return at the one year and it's consistent

ly beat the S&P 500 at each of the other different time frames and this fund happens to have the highest dividend among all of today's funds where this is an allaround great Workhorse and now we'll move on to the next fund of ishares expanded Tech sector with the symbol IGM that happens to invest in 250 tech companies like meta platforms that had a couple of Rocky years and a luster investment in the metaverse but they fine-tuned their operations where their margins truly started to kick in in l

ate 2023 where that should only continue to grow moving forward as for the IGM performance it's off to a great start year to date where it has crushed the S&P 500 but I will share that its 5-year performance is the lowest among all of today's funds and it also has one of the lowest dividends of the group but most tech companies don't even offer dividends because they happen to reinvest them back into the company and I think most us agree that it it happens to show in the growth of the stock pric

e moving right along we have the ishares US technology ETF with a ticker symbol iyw which has been one of my favorites over the past few years where many of the top 10 companies in these funds are common but Salesforce in this one is a shining star where Salesforce offers its Einstein AI platform to Aid across an entire organization from customer service sales and marketing in order to help automate and streamline workflows it's a customizable platform that many companies have leveraged in the p

ast but now the system is being pumped up with AI and in order to stay competitive many companies will rely on the likes of Salesforce where its own stock is up over 8% this year and as for iyw I'm thankful that it was in my basket of funds but when it comes to the dividends expenses and other attributes they just happen to be in the middle of the group with nothing really notable to point out I'll keep moving on with the next fund of iShare semiconductor ETF with the symbol S soxx or I know tha

t you may recall that the first ETF of PSI was also a semiconductor ETF but when you take a moment and compare the two there's only a 54% overlap in Holdings and Diving a little bit deeper you can see which companies on the left are weighted a little bit heavier to S soxx and the list on the right are a little bit more so with PSI like I said at the beginning I made certain to remove funds with a substantial amount of overlap now when you look at the S soxx performance and that 5-year return of

30% well that's just rocking but with high performers like this the volatility is showcased in its worst Year's performance at a Nega 51% which happened to be the worst of the group but I certainly hope that all of you know that high growth funds like this come with the higher risks which just happens to balance out the rewards now on to the next fund of vanx semiconductor ETF with the symbol SMH which is a fund that I spoke to quite a bit last year and objectively it happens to surface towards

the top of the list this year and I know which you're thinking wow another semiconductor ETF but when you look at all three funds together you can see in this chart that the highest overlap is between this fund SMH and the ey shares fund s soxx at a 71% overlap and when you double click that a little bit further you see that the S soxx overweight from the SMH on the left hand side it has some really good companies like AMD and Marvel while the sxx underweight to SMH which happens to be the right

hand side it shows a steep divide with the video weight tsmc and synopsis I do want to remind you that I show this level of detail so that you can understand just how deep I'm looking at each of these fun comparisons and the research that I do for these videos and before I list the SMH performance at the end of this video I'm going to show you a model of the top three ETF from today and how it would have performed against the S&P 500 over the past 10 years so let's cover the SMH performance and

the oneyear 3year and 5-year performance is the best among all of today's funds so as you can see there's probably no question why it surfaced to the top of the list as for the other attributes the fund's beste performance is also at the very top of all the other funds and the worst year is at the middle of the pack which is kind of that perfect balance now let's finish this off by modeling out of a person that only had the top three funds from today's video and we'll compare that to the S&P 50

0 over the past 10 years and when you see this chart it looks like they were very similar for the first few years but around 2016 there was a large Divergence where these AI heavy funds had a combined 10-year compounding annual growth rate of 20.9% compared to the S&P 500 at 12% to help paint that picture if you invested $110,000 total across the top three funds and compared that to $10,000 invested in the S&P 500 for those same 10 years the S&P 500 would have netted you $31,000 but these top th

ree ETF with a combined kager of 20.9% it would have been over 66 ,000 and with the AI Revolution that's happening right now I think that the next 10 years are going to be equally as prosperous for these types of funds let me know in the comments below what you think of this list and the tools that I used in my comparison and hey don't forget I have a link to a spreadsheet down below that list all the different AI funds that I used in my comparison thanks so much for watching