IRBO ETF

IRBO ETF now more skewed towards large cap, AI-related stocks with high valuations. Disillusionment in AI market may mean some of the current revenue is non-recurring for the industry. The basis for major LLMs is training to be convincing, not correct.

iShares Robotics and Artificial Intelligence Multisector ETF is a buy due to its equal-weighted holding strategy, low expense ratio, and high dividend yield compared to peer funds. IRBO is the most diversified AI and robotics ETF with 111 holdings, capturing the growth and expected returns of the robotics industry. The fund has a favorable valuation compared to its peers, with attractive P/E and P/B ratios, and offers lower volatility compared to other AI and robotics funds.

High-growth tech themes like AI and robotics have rebounded strongly this year. As we head into a lower rate environment and with the AI/robotics runway more extensive than ever, stocks look poised to recoup their 2021/2022 losses. IRBO, a thematic vehicle that rightly optimizes for diversification and low cost, should outperform.

Artificial intelligence (AI) stocks like Nvidia and Tesla have surged this year, but it hasn't always been smooth sailing. Large gains and high risks usually go hand in hand, and determining which AI companies will thrive won't be easy.

The iShares Robotics and Artificial Intelligence Multisector ETF offers exposure to companies at the forefront of robotics and AI innovation. IRBO focuses on the key drivers of the fourth industrial revolution and invests in companies involved in developing and deploying robotics and AI technologies. Global spending on AI is expected to double by 2026, making IRBO a strategic opportunity to harness technological growth and seek long-term returns.

The iShares Robotics and Artificial Intelligence Multisector ETF is recommended for investors seeking diversified AI exposure, with strong efficiency characteristics. The ETF has high exposure to the Information Technology sector and international diversification through holdings in China, Japan, and Taiwan. Despite being more expensive than broader index funds, IRBO is preferred for its liquidity, diversification, and constructive chart. I give the fund a buy rating.