Global X Artificial Intelligence ETF (GXAI) $15.38

The ASX-traded GXAI ETF seeks to replicate the performance of the Indxx Artificial Intelligence & Big Data Index. It invests in global companies that develop AI technologies, provide AI-as-a-service, or create the hardware/infrastructure enabling big-data analysis and AI deployment. It’s fairly new, having been launched in April 2024 as the thematic came into vogue. This is a good ETF if the goal is a “pure‑play” AI theme on the ASX.

• The ETF holds 89 stocks, with its 5 largest positions currently AMD 4.1%, Alphabet 3.9%, Samsung 3.7%, Tesla 3.6%, and Alibaba 3.5%  – no Nvidia at the top.
• From a geographical perspective, it has 69.1% exposure to the US, followed by 6.4% Korea, 4.5% China and 4% Taiwan.
• It has a modest market cap of $200mn, while its fees are a reasonable 0.57%.
• Its performance has been excellent over the last year, advancing +38.9%.

With the “AI Trade” feeling vulnerable for the first time this year, as valuation concerns weigh on investors, we think it’s time to “buy the dip” with the ETF offering broad AI exposure when volatility is growing on the stock level.

• MM likes the GXAI ETF in the $14.50-15 region, but we wouldn’t chase strength at this stage.