AI ETFs are becoming increasingly specialized as issuers target potential bottlenecks in data centers, power infrastructure, photonics, and other technologies supporting artificial intelligence. Ecosystem ETFs and Asian AI funds are two examples, notes Tony Dong, lead ETF analyst at ETF Central.
I remember when the first generation of artificial intelligence ETFs started appearing. When funds like the Global X Artificial Intelligence & Technology ETF (AIQ) debuted in 2018, many were essentially dressed-up large-cap growth funds.
Anthropic AI Lab Ecosystem ETF (ANTW)
Now, there's clearly no shortage of ways to express a view on AI through ETFs anymore. The more interesting developments, however, are occurring at the smaller and more concentrated end of the market. Issuers are attempting to isolate specific technologies, infrastructure requirements, and business models that could benefit from continued AI investment.
For example, what if you wanted to bet on one particular AI model outperforming its competitors? Companies behind models such as Claude, Gemini, Llama, and ChatGPT are constantly releasing new versions, publishing benchmark results, and competing to develop increasingly capable systems, with artificial general intelligence (AGI) representing a longer-term ambition for several of them.
Each AI lab operates within a broader ecosystem of companies supplying the infrastructure, technology, and services needed to develop, deploy, and commercialize its models. That's the opportunity Harbor Capital is attempting to capture with its AI Labs Ecosystem ETF suite. Examples include Harbor’s Anthropic AI Lab Ecosystem ETF (ANTW) and the SpaceX AI Lab Ecosystem ETF (XAIW).
Meanwhile, even though most of the world's largest AI hyperscalers are based in the US, investors shouldn't overlook the other side of the Pacific. Asia plays an important role in the AI supply chain, from semiconductor fabrication and memory manufacturing to the development of competing models.
For investors seeking dedicated Asian AI exposure, KraneShares is worth examining given its longstanding specialization in Chinese and broader Asian equity markets. Those interested specifically in China's domestic technology industry can consider the KraneShares SSE STAR Market 50 Index ETF (KSTR).
