U.S. Markets closed

Should You Invest in the Global X Future Analytics Tech ETF (AIQ)?

Sweta Killa
Best Buy (BBY) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

Launched on 05/11/2018, the Global X Future Analytics Tech ETF (AIQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the U.S. equity market.

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.

Index Details

The fund is sponsored by Global X Management. It has amassed assets over $205.29 M, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the U.S. equity market. AIQ seeks to match the performance of the INDXX ARTFCL INTELLIGENCE & BIG DATA ID before fees and expenses.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.68%, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, Alibaba Group Holding-Sp accounts for about 3.30% of total assets, followed by Facebook Inc-A and Nvidia Corp.

The top 10 holdings account for about 31.85% of total assets under management.

Performance and Risk

Year-to-date, the Global X Future Analytics Tech ETF has lost about -0.41% so far. AIQ has traded between $14.87 and $15.80 in this past 52-week period.

With about 84 holdings, it effectively diversifies company-specific risk.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
GLBL-X FUT AN T (AIQ): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research