Shares in digital financial services firm SoFi Technologies (SOFI) were lower today despite jumping on board the AI revolution with a new ETF.
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Stalwarts Targeted
Marking its first ETF launch in two years, the SoFi Agentic AI ETF will target “next-generation AI” companies, such as those developing self-driving vehicles, autonomous technology and cybersecurity networks, as well as AI stalwarts such as semiconductor and cloud computing firms.
SoFi’s ETF will track the performance of a new tailor-made index from Solactive, the BITA USA Agentic AI Select Index.
Brian Walsh, head of advice and planning at SoFi, said that the index’s current 30 components range from some of the most-owned AI investments, such as semiconductor giant Nvidia (NVDA), to more unusual ways to play the theme, such as Intuitive Surgical (ISRG) and Deere & Co. (DE), firms which are integrating AI into robotic surgery products and farm equipment.
AI stocks such as Nvidia and Meta (META) have powered higher this year as demand for the technology from all parts of business and society grows.
However, there have been growing concerns over the huge valuations in the sector, as well as AI’s ability to generate outsize productivity and profitability gains.
Under Pressure
U.S. AI stocks are also facing increased competition from China, which is beginning to make huge inroads into areas such as large language models backed by state support.
The most recent AI-themed ETF to launch was the Janus Henderson Global Artificial Intelligence ETF (JHAI) on August 19. That fund has seen inflows of $1.9 million since its debut.
Steve Sosnick, market strategist at IBKR, said that in spite of the profit-taking on big AI stocks like Nvidia in recent days, “the enthusiasm for this theme is still driving the bus.”
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