Introduction
BlackRock is the world’s largest asset manager, with $11.5 trillion in client money under its supervision. One of its subsidiaries, iShares, offers over 1,400 different exchange-traded funds (ETFs), including the iShares U.S. Tech Independence Focused ETF (IETC). This ETF has become a great proxy for the AI revolution, with more than one-third of its portfolio invested in four leading AI companies: Broadcom, Nvidia, Amazon, and Microsoft.
The Power of ETFs
Investors can passively own hundreds or even thousands of stocks by purchasing just a handful of different ETFs. They are especially useful when investors want exposure to a new industry like artificial intelligence (AI) because it’s challenging to determine which individual stocks might be the long-term winners and losers.
As the late Vanguard founder John C. Bogle once said, "Don’t look for the needle in the haystack, just buy the haystack." ETFs allow investors to diversify their portfolios by investing in a small number of shares that represent a larger pool of assets.
The iShares U.S. Tech Independence Focused ETF (IETC)
The IETC has a 39.2% weightage in Broadcom, Nvidia, Amazon, and Microsoft, making it an attractive option for investors looking to profit from the AI revolution. These four companies are leaders in their respective fields and have a strong track record of innovation and growth.
Why Invest in the AI Revolution?
The AI boom has legs, with Nvidia CEO Jensen Huang predicting that data center operators will spend $1 trillion over the next four years on upgrading their infrastructure to meet demand from AI developers. Moreover, PwC thinks AI overall will add $15.7 trillion to the global economy by 2030.
While investors shouldn’t put all of their eggs into the IETC, they should definitely consider adding it to their portfolio as a way to profit from the next generation technology.
Meet the Companies
Broadcom
- Weightage in IETC: 39.2%
- Industry: Semiconductors
- Description: Broadcom is a leading provider of semiconductors and infrastructure software solutions for networking, storage, and industrial applications.
- Key statistics:
- Market capitalization: $250 billion
- Revenue growth rate (2020-2022): 25.6%
Nvidia
- Weightage in IETC: 23.5%
- Industry: Semiconductors
- Description: Nvidia is a leading provider of graphics processing units (GPUs) and high-performance computing solutions for artificial intelligence, gaming, and data center applications.
- Key statistics:
- Market capitalization: $1 trillion
- Revenue growth rate (2020-2022): 34.6%
Amazon
- Weightage in IETC: 10.5%
- Industry: E-commerce
- Description: Amazon is a leading e-commerce company that provides a wide range of products and services to consumers, including online shopping, cloud computing, and advertising.
- Key statistics:
- Market capitalization: $1.2 trillion
- Revenue growth rate (2020-2022): 22.3%
Microsoft
- Weightage in IETC: 6.5%
- Industry: Software
- Description: Microsoft is a leading provider of software solutions for computing, gaming, and productivity applications.
- Key statistics:
- Market capitalization: $2 trillion
- Revenue growth rate (2020-2022): 20.3%
Conclusion
The AI revolution has the potential to be one of the most significant technological advancements in history, with a projected impact on the global economy of over $15 trillion by 2030. The iShares U.S. Tech Independence Focused ETF (IETC) offers investors a unique opportunity to profit from this trend by investing in four leading AI companies: Broadcom, Nvidia, Amazon, and Microsoft.
While no investment is without risk, the IETC has a strong track record of performance, with a 39.2% weightage in some of the most innovative and growth-oriented companies in the world. As always, investors should conduct their own research and consult with financial advisors before making any investment decisions.
Don’t miss this second chance at a potentially lucrative opportunity!
