For investors seeking momentum, Robo Global Artificial Intelligence ETF THNQis probably on radar. The fund just hit a 52-week high and is up 63.61% from its 52-week low price of $23.36/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
THNQ in Focus
The underlying ROBO Global Artificial Intelligence Index measures the performance of publicly-traded companies that have a significant portion of their revenues derived from artificial intelligence (AI). The product charges 68 bps in annual fees (See: all the Artificial Intelligence and Robotics ETF here).
Why the Move?
In 2022, the global AI market reached a valuation of $ 136.55 billion. It is anticipated to witness a significant expansion at a CAGR of 37.3% from 2023 to 2030, as per Grand View Research. Nvidia’s exceptional earnings in the first quarter of fiscal 2023 have sparked optimism within the industry, resulting in a surge in stock prices across the sector, pushing AI ETFs to new highs.
AI has the power to revolutionize global productivity and GDP. By 2030, PWC predicts that around 45% of economic gains will come from improved products, driving consumer demand.
More Gains Ahead?
The fund might continue with its strong performance given a positive weighted alpha of 35.74.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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