Generative AI is generating significant interest among investors, and this ETF provides plenty of exposure to the industry.
Climbing 467% over the past three years, Nvidia (NVDA 3.46%) Stocks rose dramatically as investors raced to gain exposure to artificial intelligence (AI). Those looking to add AI exposure to their portfolios may feel they’ve missed out on Nvidia stock. Additionally, they may feel overwhelmed by the variety of other options to consider.
But the Roundhill Genetic AI & Technology ETF (conversation 2.19%) It has all those bases covered. In addition to its large position in Nvidia, the Roundhill Geneative AI & Technology ETF provides exposure to a variety of other AI-focused companies that will benefit from the growth in generative AI, machine learning, and big language models.
This is going to be great
It wasn’t long ago that people had little exposure to generative AI. Nowadays, it seems inevitable.
Its presence in our lives will almost certainly continue to rise. In fact, many pundits predict it will accelerate dramatically. Business intelligence firm Markets and Markets predicts that the generative AI market will represent approximately $21 billion in 2024 and will rise at a compound annual growth rate of 37% until 2030 when it will reach $137 billion.
Eager to capitalize on the growth in generative AI, it was no surprise that investors were racing into Nvidia shares. Nvidia, a leader in graphics processing units (GPUs), helps data centers handle the massive compute demands placed on them by generative AI platforms. However, with its recent rally, Nvidia stock now trades at 69 times operating cash flow (OCF), making it unattractive to those looking to avoid high valuations.
An AI-powered ETF like no other
Described as “the world’s first generative AI ETF,” Roundhill Investments, the fund’s manager, cites research from Goldman Sax It is estimated that artificial intelligence could contribute to $7 trillion in economic growth worldwide over the next ten years.
With 46 holdings in the fund, the Roundhill Geneative AI & Technology ETF provides investors with broad exposure to leading companies that will lead the advancement of generative AI. Of course, Nvidia has a prominent spot in the ETF with a 10.1% weighting, making it the largest position, so those wary of Nvidia stock alone will still have some exposure. Rounding out the top three, Microsoft (NASDAQ:MSFT) And the alphabet (Nasdaq: Google) They are in second and third place, respectively.
While Nvidia makes GPUs that help support generative AI computing, Microsoft is developing AI solutions like Copilot, an AI assistant that integrates with many Microsoft products. The company’s reach in the AI space is further extended by its multi-billion dollar investment in ChatGPT. Likewise, Google is incorporating AI into offerings like Gemini, an AI-powered chatbot. In exploring the potential of artificial intelligence in various applications, Google runs the DeepMind Lab where it explores the development of artificial general intelligence.
while dead Platforms (NASDAQ:META)whose Llama 3 large language model can be used to develop generative AI applications, is the fifth-largest position in the Roundhill Geneative AI & Technology ETF, and it’s not just Magnificent Seven stocks that occupy the top spots; Adobe (Nasdaq:ADBE) It is the fourth largest position. Adobe’s Firefly, a generative AI application, can be used across many Adobe products, such as Express, Photoshop, and Illustrator.
Is the Roundhill Genetic AI & Technology program right for you?
There’s no denying that Nvidia stock is very tempting right now given the company’s status as a powerhouse GPU developer, but it’s not the only production AI game in town. Investors who are aware of this fact—and who are looking for comprehensive exposure to the industry—will want to pay particular attention to the Roundhill Geneative AI & Technology ETF, which offers a unique opportunity to gain broad exposure to generative AI. I know I am. This ETF has been on my watchlist for several months, and I plan to start a position in the coming weeks to sit in my portfolio’s designated spot for growth investments.
Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Susan Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Scott Levin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Alphabet, Goldman Sachs Group, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long $395 January 2026 calls on Microsoft and short $405 January 2026 calls on Microsoft. The Motley Fool has a disclosure policy.
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