The iShares Robotics and Artificial Intelligence ETF has undergone a full rebrand and is now the iShares Future AI & Tech ETF (ARTY 0.5%). Along with the name change came a switch to a new benchmark, meaning the exchange-traded fund (ETF) now selects and weights its holdings using a different set of rules.
Whether this new approach is an improvement over its previous iteration is the key question investors will want to answer before deciding whether this fund deserves a place in their portfolio.
What is it?
What is iShares Future AI & Tech ETF (ARTY)?
The iShares Future AI & Tech ETF is a thematic ETF that passively tracks the Morningstar Global Artificial Intelligence Select Index. A thematic ETF is not limited to a single sector but instead blends companies from various parts of the market that are connected by a common theme — in this case, artificial intelligence (AI).
The iShares Future AI & Tech ETF’s holdings span multiple AI subthemes, including generative AI, AI data and infrastructure, AI software, and AI services. The fund is globally focused, with a large U.S. presence alongside several international players.
It currently manages just under $1.3 billion in assets and trades with a 0.09% 30-day median bid-ask spread, making it reasonably liquid for most investors.
How to buy
How to buy iShares Future AI & Tech ETF (ARTY)
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the ETF: Enter the ticker or ETF name into the search bar to bring up the ETF’s trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you’re willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Holdings
Holdings of iShares Future AI & Tech ETF (ARTY)
The iShares Future AI & Tech ETF currently holds 48 stocks, with about 82% of its assets allocated to the technology sector. The rest is spread across communications, industrials, utilities, and consumer discretionary companies. Geographically, roughly 83% of the portfolio is U.S.-based, with the remainder in Japan, Taiwan, France, Canada, and Israel.
The ETF is fairly volatile, with a three-year standard deviation of 25.13% and a beta of 1.31, meaning it tends to move more than the broader market in both directions. It also trades at elevated valuations, with a price-to-earnings (P/E) ratio of 39.32 and a price-to-book ratio of 6.58. Here are the Robotics and AI ETF‘s top 10 holdings and their weights:
- Advanced Micro Devices (AMD -2.42%): 5.97%
- Arista Networks (ANET 1.96%): 5.56%
- Nvidia (NVDA 0.0%): 5.32%
- Vertiv Holdings, Class A (VRT -0.75%): 5.24%
- Broadcom (AVGO -2.69%) – 4.77%
- Super Micro Computer (SMCI 0.11%): 4.53%
- Palantir Technologies (NYSE:PLTR): 3.82%
- Advantest (ADTTF -1.33%): 3.30%
- Constellation Energy (CEG -0.62%): 3.15%
- Alphabet (GOOGL 0.57%) (GOOG 0.51%): 3.10%
Should I invest?
Should I invest in iShares Future AI & Tech ETF (ARTY)?
If you want AI exposure without building your own list of AI stocks and find traditional tech ETFs too narrow, the iShares Future AI & Tech ETF offers a way to outsource that. Benefits include global diversification and a portfolio spanning multiple AI subthemes beyond just chipmakers and software giants.
However, as a thematic ETF, it tends to be pricier. The recent benchmark and name change may also concern investors who prefer long-term consistency in strategy.
Dividends
Does iShares Future AI & Tech ETF (ARTY) pay a dividend?
The iShares Future AI & Tech ETF does not currently pay a dividend. AI companies tend to have low dividend yields because they reinvest heavily in growth, and the ETF’s higher expense ratio further reduces distributable income. If the iShares Future AI & Tech ETF ever does pay a dividend, distributions would likely be semiannual.
A percentage of mutual fund or ETF assets deducted annually to cover management, operational, and administrative costs.
Expense ratio
What is iShares Future AI & Tech ETF’s expense ratio?
The iShares Future AI & Tech ETF has an expense ratio of 0.47%, or $47 annually for every $10,000 invested. This is pricier than most sector or broad market ETFs but is in line with the average for thematic funds.
Historical record
Historical performance of iShares Future AI & Tech ETF (ARTY)
|
Metric |
1 Year |
3 Years |
5 Years |
|---|---|---|---|
|
Net Asset Value |
23.34% |
16.31% |
7.85% |
|
Market Price |
23.75% |
16.41% |
7.89% |
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Final word
The final word on iShares Future AI & Tech ETF (ARTY)
There’s no shortage of AI-themed ETFs, and iShares Future AI & Tech ETF’s approach isn’t drastically different from its competitors. The iShares brand may offer some comfort, but its holdings and weighting methodology are fairly standard for the space.
The expense ratio is average for a thematic ETF but not cheap, and the benchmark change means there’s limited historical data for its current strategy. Investors should compare iShares Future AI & Tech ETF against other AI funds before committing, as similar exposure may be available at a lower cost or with a longer track record.
FAQ
Investing in iShares Future AI & Tech ETF (ARTY) FAQ
How do I buy ARTY ETF?
You can purchase the iShares Future AI & Tech ETF through any brokerage account by entering its ticker and placing a buy order.
What is the symbol for iShares Future AI & Tech ETF?
The ticker symbol for the iShares Future AI & Tech ETF is ARTY.
How can I invest in AI and tech?
You can pick your own stocks or outsource the responsibility to a thematic ETF, such as the iShares Future AI & Tech ETF.
Is ARTY a good investment?
iShares Future AI & Tech ETF (ARTY) may suit investors seeking global AI-focused exposure, although its costs and volatility are higher than those of broad tech ETFs.