Emerging Industry ETFs
Seeing the fantastical news articles and tremendous returns AI has bloomed in recent months, several new ETFs have highlighted these emerging industries that have the potential to shift market paradigms. Firstly, an ETF, or exchange-traded fund, could be considered as a bundle of stocks or bonds that any investor could purchase, typically tracking an index, sector, or industry. Recently, market exchanges have added several new ETFs that track emerging industries. One example is WisdomTree’s Artificial Intelligence ETF, which contains several publicly listed companies leveraging AI in several technologies and applications. Some of these companies include Nvidia, AMD, Microsoft, and more. Another peculiar ETF looks into the rapidly growing gaming industry. VanEck’s Video Gaming and ESports ETF is comprised of familiar names like Activision Blizzard, Nintendo, EA, and other smaller players making their way in the relatively young sector.
Another broader ETF that has made headlines has been the Global X Millennial Consumer ETF, tracking trends closely followed by demographics within the Millennial generation. These nicknamed “Millennial Companies” include favorites like Uber, Netflix, Apple, Chipotle, and several more. Apart from tech-related ETFs, the religiously defined Wahed Dow Jones Islamic World ETF tracks companies like Samsung and Tencent that emit characteristics that are consistent with Islamic principles. As an investor, these thematic ETFs exactly allow you to put your money where your mouth is, buying into companies and industries you either love or are morally aligned to.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.