AI funds: These are the 5 best AI funds

AI funds are becoming increasingly popular. What AI funds are and an overview of the best funds

The best AI funds

The term AI fund is not uniformly defined. It includes funds that invest in AI as well as funds that invest in other areas but use AI for investment decisions.

• BlackRock Global Funds – World Technology Fund, ISIN LU0171310443: This fund invests in companies active in the field of technology and artificial intelligence. It offers broad diversification and has performed strongly in recent years. Top 5 investments are Microsoft, Apple, Nvidia, Cadence Design Systems and Meta (as of January 2024).

• DWS Invest Artificial Intelligence – MFC EUR ACC, ISIN LU2154580323: The fund focuses on companies that develop and apply innovative technologies and solutions in the field of artificial intelligence. These include companies in the fields of robotics, automation, big data and machine learning. The fund has mainly invested in Microsoft, Alphabet A, Nvidia, TSMC and Amazon.

• Allianz Global Artificial Intelligence, ISIN LU1548497186: This fund invests in companies that are leaders in the field of artificial intelligence and machine learning. It offers investors the opportunity to benefit from the growing demand for AI technologies. The fund’s largest holdings include Nvidia, Tesla, Amazon, Shopify and Twilio.

• ODDO BHF Artificial Intelligence, ISIN LU1919842267: ODDO BHF’s AI fund not only invests in promising AI stocks, this fund also uses AI algorithms to identify suitable stocks. For example, the fund focuses on investments in Microsoft, Snowflake, Amazon, Workday and ServiceNow.

• Acatis AI US Equities, ISIN DE000A2JF683: As recognizable by the ISIN, Acatis is a German AI fund. The investment strategy focuses on listed US companies. Unlike other funds, one position reaches a maximum of three percent, and the fund also uses proprietary AI algorithms to select investments. The investment focus of the top 5 investments is currently on UBS, Adobe Systems, Dell, Kla-Tencor and Walt Disney.

• Note: It is important to find out about the fund’s investment strategy and the opportunities and risks before investing. Every investor has an individual risk profile and should therefore make their investment decisions accordingly. We strongly recommend that you seek advice from a financial advisor or other qualified professional before investing to ensure that the investment meets your individual needs and objectives.

The difference between AI funds and AI ETFs

Funds and ETFs are often mistakenly used interchangeably. The differences at a glance:

• A fund is an investment vehicle that is actively managed by a professional fund manager, while an ETF (Exchange Traded Fund) takes a passive approach and replicates an index.

• It may have a higher fee than an ETF due to active management by the fund manager, whereas an ETF often has lower costs as it is passively managed.

• Funds also offer broader diversification than ETFs, as the fund manager can actively implement different investment strategies, whereas an ETF simply tracks an index.

• However, both investment vehicles offer investors the opportunity to invest in different assets and benefit from long-term growth opportunities.