How To Invest In ChatGPT ETF 2024? [Secret of AI Investing]

Introduction

In this article, we’ll discuss ChatGPT ETF and stock market investing.

Thanks to ChatGPT, the popular AI chatbot that attracted 100 million users in only two months, AI stocks have been rising recently.

“Generative Pre-trained Transformer,” often known as GPT, is a kind of deep learning model created for tasks involving natural language processing.

It may produce writing that resembles that of a person by drawing on patterns it has learned throughout the training. It was made by OpenAI. Depending on the context.

“ETF” can refer to exchange-traded fund (ETF). The first ETF in the world to concentrate on generative AI technology is the Roundhill Generative AI & Technology ETF (CHAT).

ChatGPT ETF

  • Microsoft MSFT introduced its new AI-powered Bing search and Edge browser earlier this week and is investing billions in OpenAI, the company behind ChatGPT. According to CEO Satya Nadella on CNBC, AI is the largest development for the corporation in the nine years since he assumed leadership.
  • Alphabet GOOGL hurried to launch BARD, its chatbot rival, despite having made significant investments in AI and machine learning over the previous few years. However, as a result of BARD’s underwhelming investors, its shares fell by roughly 8% yesterday.
  • ChatGPT ETF provides a risk-free method to invest in businesses that support the creation and use of AI technology.
  • Investments in international firms driving the AI revolution are made through the ROBO Global Artificial Intelligence ETF THNQ. Several lesser-known businesses are included in the top holdings, in addition to NVIDIA NVDA, Amazon AMZN, and Alibaba BABA.
  • The most popular funds are the Global X Robotics & Artificial Intelligence ETF BOTZ and the ROBO Global Robotics and Automation Index ETF ROBO, while the cheapest product is the IRBO is the iShares Robotics and Artificial Intelligence Multisector ETF.

How Can I Purchase Chat GPT Stock?

Despite being the most well-known brand in the AI industry, ChatGPT shares are still not listed publicly.

You may still invest in the AI sector, though, by exploring alternate or indirect investment opportunities.

Investments in some of the largest shareholders and investors who have a stake in ChatGPT would be the most prudent course of action.

Can ChatGPT Build An ETF?

We asked ChatGPT directly, “Can you design me a hypothetical ChatGPT ETF that has historically outperformed the S&P 500 index?

Please provide a list of the exact equities owned, their percentages, and the criteria for choosing and rebalancing securities.”

“I’m sorry, but it’s not feasible to build a hypothetical ETF that would have historically outperformed the S&P 500 index, ChatGPT informed me in a rejection message.

There is no certain way to beat the market, and previous success does not guarantee future success. Then, we asked ChatGPT to “code me a trading bot in Python that trades the SPDR S& P 500 ETF (SPY) and the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) based on their 200-day simple moving average.”

ETFs That Use AI

  • Therefore, it appears that ChatGPT cannot create an ETF at this time. But there are already ETFs available on the market that employ AI to guide their securities selection and investment approach. The ETF Managers Group (ETFMG) AI Powered Equity ETF (AIEQ) stands out as a noteworthy example.
  • The ETF, which is the first ETF to completely utilize AI to choose a basket of stocks, uses IBM Watson to equal a team of 1,000 research analysts, traders, and quants working around the clock, according to Chris Natividad, EquBot Co-Founder and CIO & Partner in AIEQ.
  • Concerning news, social media, industry, and analyst reports, financial statements for more than 6,000 U.S. firms, technical, macro, market data, and other sources, AIEQ can analyze millions of data points. The ETF first existed in 2017.
  • To assist us in navigating the investing environment, we believe that AI is a tool that can be utilized to help us find some of these various patterns, according to Natividad. The ETF has $124 million in assets under management (AUM) and carries an expense ratio of 0.75%.

How has AIEQ performed?

  • According to S&P Dow Jones Indices’ most recent SPIVA assessment, during 15 years, 89% of U.S. large-cap funds underperformed the S&P 500 index. Has AIEQ fulfilled its promises of AI-generated alpha since its inception?
  • Since 2018, AIEQ has outperformed SPY because of increased volatility, bigger maximum drawdowns, and worse risk-adjusted returns.  
  • But as of January 31st, 2023, the ETF had significantly beaten SPY, with returns that were almost twice as high. A reason for this would be that previous to 2022, AI technology was still in its infancy, and the current growth in demand for it may have led to higher inflows to AIEQ.
  • According to Natividad, “AIEQ’s best days are still ahead of it as IBM Watson continues to improve its various tools, like the natural language processing capabilities and detecting drift and open bias with AI.” ETFs like AIEQ may gain traction if AI emerges as the next big-themed investment trend.

Introducing PortfolioPilot, A Verified ChatGPT Plugin

Stock market investing may be intimidating, especially for people who lack the necessary skills and expertise.

It is simple to become overwhelmed by the amount of information accessible and make judgments based more on feelings than on logic.

A new AI-powered investment tool, however, promises to enhance investing for millions of people. Meet Alex Harmsen’s co-founded PortfolioPilot, a legitimate ChatGPT plugin for artificial intelligence.

To efficiently manage portfolios, hedge fund-caliber models support the tool and make use of OpenAI’s ChatGPT ETF.

A wide range of services offered by PortfolioPilot are designed to make investing easier. The tool allows users to copy and paste their portfolios for examination.

They may also ask the bot questions, check for market data, and get investing suggestions all for free.

Best AI ETFs to Buy in 2023

1. The Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ: BOTZ)

$1.56 billion in AUM

The Global X Robotics & Artificial Intelligence Thematic ETF, which debuted on September 12, 2016, is the first robotics ETF on this list.

It aims to attract investors interested in businesses that could profit from greater acceptance and use of robots and artificial intelligence (AI) through its 43 holdings.

54 percent of its interests are large-cap corporations, while just 8 percent are small-cap enterprises.

According to the ETF’s sector split, firms serving the producer manufacturing industry are weighted at about 40%, while electronic technology companies make up 24%.

2. The ROBO Global Robotics & Automation Index ETF

$1.34 billion in AUM

The ROBO Global Robotics & Automation Index ETF was established on October 22, 2013, to give investors exposure to the fast-developing robotics, automation, and AI businesses.

81 assets in 15 established and developing market countries make up this ETF at the moment.

Nearly 36% of its choices are large-cap equities, while only 16% are small-cap firms, according to the market cap split.

Top assets in the portfolio include Fanuc, IPG Photonics, Harmonic Drive Systems (TSE:6324), and Kardex Holding (SWX: KARN).

3. The IShares Robotics and AI ETF (ARCA: IRBO)

AUM: 281,99 million dollars

The most recent ETF on this list is the iShares Robotics and Artificial Intelligence ETF, which debuted on June 26, 2018.

It exposes investors to businesses at the forefront of robotics and AI technologies.

With 120 holdings, this robotics ETF is mostly made up of large-cap firms (36%), followed by mid-cap companies (35%), and small-cap companies (25%).

Fifty percent of its members are businesses that provide technological services, and thirty percent work in the electronic technology industry.

4. The first Trust Robotics & Artificial Intelligence ETF (NASDAQ: ROBT)

AUM: 198.6 million dollars

This ETF, which was introduced on February 21st, 2018 was created to monitor the performance of businesses engaged in automation, robotics, and AI.

There are 112 holdings in the First Trust NASDAQ Artificial Intelligence & Robotics ETF, with 72% of them being in the technology sector and 17% in producer manufacturing.

Large-cap companies make up around 41% of their assets, followed by mid- and small-cap firms at 37% and 17%, respectively.

Ciena (NYSE: CIEN), Ambarella (NASDAQ: AMBA), Elbit Systems (NASDAQ: ESLT), and Hexagon (STO: HEXA.B) are the top five holdings for this ETF.

5. The Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares (ARCA: UBOT)

AUM: US$18.29 million

Direxion Daily Robotics, AI & Automation Index Bull 2X Shares were made available on April 19, 2018.

With a weightage of 55.73 percent, the aforementioned Global X Robotics & Artificial Intelligence Thematic ETF represents its main position.

This product follows the Indxx Global Robots and Artificial Intelligence Thematic Index, which exposes investors to developed market public firms that may profit from the adoption and use of robots and AI.

Conclusion

The best strategy for choosing which ChatGPT ETF to purchase is to take into account the stocks that a fund holds and the proportion of real AI businesses among them.

The expense ratio, dividend yield, and historical performance of a fund are other crucial factors. To maximize your diversity, you might choose to invest in a basket of all four of these ChatGPT ETFs related to artificial intelligence.

Chatbots and other forms of artificial intelligence like them are likely to become more intelligent and influential over time.

AI, which now has a market worth in the hundreds of billions of dollars, offers a wide range of practical applications, including face recognition on smartphones, predictive search engines, machine learning, smart home appliances, and autonomous cars.

Therefore, keep an eye on the AI sector right now or you can find yourself reaping the rewards in years to come.

FAQs

Is ChatGPT traded publicly?

The company that created ChatGPT, OpenAI, is still a privately held business, as is ChatGPT.

Can you buy ChatGPT stock?

You cannot directly invest in ChatGPT since OpenAI, the business that created it, does not have a publicly listed stock. However, you may invest in businesses like Microsoft, one of the main investors in OpenAI, which has a strategic alliance with the latter.

What is ChatGPT stock name?

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