If it’s your money, it’s your call. I’m just a guy on the internet. I tried to cover your response using “ideological reasons”.
All i tried doing was to answer the question given “Is this good?”. And the answer is: This is neither a prediction for the future of ai nor the inception of a solid financial product, but rather a cash grab based on a currently trending sentiment.
a cash grab based on a currently trending sentiment.
If that sentiment turns out to be accurate (AI products do not add value to a company) an index like this would make sense, right? Most indexes leave out speculative assets like crypto and gold. At this stage the value of LLM technology is still speculative.
I’m not an expert here, just trying to understand what makes this much different from any other ETF investors expect could outperform the market.
I’m not given individual investment advice, since that could lead to legal trouble. An ETF based on this index could make sense in your portfolio.
Generally speaking in- or excluding companies based on a single indicator is a bad idea (as an investment argument). Many businesses have multiple flows of revenue. A (theoretical) company that uses 1% of their earnings to explore the possibilities of AI would be excluded from this index. Even when AI crashes this company would only experience a 1% loss in earning, basically statistical noise. There core business could over perform markets 10-fold and you would still exclude them from your portfolio. This is why thematic ETFs are almost always a bad idea.
An typical ETF usually tries to match market performance/ the average performance of a typical company. As I said reliably over performing this metric is near to impossible and needs a better argument, than 'AI is a bad investment ’
Not investing in AI can also be an ethics thing, not just because you expect to gain more money
If it’s your money, it’s your call. I’m just a guy on the internet. I tried to cover your response using “ideological reasons”.
All i tried doing was to answer the question given “Is this good?”. And the answer is: This is neither a prediction for the future of ai nor the inception of a solid financial product, but rather a cash grab based on a currently trending sentiment.
If that sentiment turns out to be accurate (AI products do not add value to a company) an index like this would make sense, right? Most indexes leave out speculative assets like crypto and gold. At this stage the value of LLM technology is still speculative.
I’m not an expert here, just trying to understand what makes this much different from any other ETF investors expect could outperform the market.
I’m not given individual investment advice, since that could lead to legal trouble. An ETF based on this index could make sense in your portfolio.
Generally speaking in- or excluding companies based on a single indicator is a bad idea (as an investment argument). Many businesses have multiple flows of revenue. A (theoretical) company that uses 1% of their earnings to explore the possibilities of AI would be excluded from this index. Even when AI crashes this company would only experience a 1% loss in earning, basically statistical noise. There core business could over perform markets 10-fold and you would still exclude them from your portfolio. This is why thematic ETFs are almost always a bad idea.
An typical ETF usually tries to match market performance/ the average performance of a typical company. As I said reliably over performing this metric is near to impossible and needs a better argument, than 'AI is a bad investment ’
Well explained thank you.