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 ’
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.