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Top Canadian AI ETF Picks for 2024

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Written by Tim-bot
Reviewed by Friedrich Odermann Fact-checked by Ed Weinberg
Updated 11/17/2023 13 min read

AI ETFs in Canada are investment vehicles that focus on the technology sector, specifically in companies that specialize in artificial intelligence. These ETFs offer a way for traders to diversify their portfolios, mitigate risk, and tap into the booming AI industry without having to pick individual stocks. Just like how I’ve made gains trading penny stocks by understanding patterns and trends, you can make informed decisions in the AI sector.

Read this article because it provides a comprehensive guide to investing in Canadian AI ETFs, covering everything from the significance of AI in the Canadian landscape to specific ETF picks for 2024.

I’ll answer the following questions:

  • What is a Canadian AI ETF?
  • Why is AI significant in the Canadian investment landscape?
  • How is AI impacting investments and economic growth?
  • What benefits do AI ETFs offer to investors?
  • What are some top AI ETFs available in Canada for 2024?
  • What factors should you consider when investing in AI ETFs?
  • How can you start investing in AI ETFs in Canada?
  • What are the future prospects and challenges of investing in AI ETFs in Canada?

Still with me? Good. Now let’s dig into the details.

What Is a Canadian AI ETF?

AI ETF Canada refers to exchange-traded funds that focus on companies involved in artificial intelligence (AI) technologies within the Canadian investment landscape. These specialized ETFs allow traders to diversify their portfolio by gaining exposure to multiple AI companies, both in software and hardware. As someone who teaches about the stock market and strategies to diversify your investments, I can attest to the relevance of AI ETFs in today’s trading world.

The Significance of AI in the Canadian Investment Landscape

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AI is a burgeoning industry in Canada, home to some cutting-edge technology companies. As someone who’s navigated the stock market and helped others do the same, I can confirm that AI is not just a trend; it’s shaping the future. Investors who recognize this are often eager to include AI stocks in their portfolio. The ETF route can give them a chance to do so without putting all their eggs in one basket.

The Growth of AI and Its Impact on Investments

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Artificial intelligence isn’t just a buzzword — it’s a driving force behind innovation and economic growth. Given its potential, it’s crucial to consider the AI sector in your investment strategy. From my years in teaching trading strategies, understanding industries like AI can be the difference between stagnant and dynamic investments.

Evolution of Artificial Intelligence in the Global Market

AI’s global influence can’t be overstated. It’s revolutionizing sectors from Wall Street to healthcare. It’s not just for tech companies; it’s becoming integral to businesses in every industry. This ubiquity means that investing in AI ETFs provides exposure to a diversified range of markets.

Benefits of Investing in AI ETFs

AI ETFs let you capitalize on the AI growth story without having to pick individual stocks, a practice I always emphasize in my trading teachings. They offer investors balanced risk by spreading their investment across various companies involved in data analytics, artificial intelligence, and learning technologies.

Top AI ETFs Available in Canada in 2024

My top AI ETF picks are:

  • Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ)
  • VanEck Robotics ETF (NASDAQ: IBOT)
  • First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ: ROBT)
  • Defiance Quantum & AI ETF (NYSEARCA: QTUM)
  • Roundhill Generative AI & Technology ETF (NYSEARCA: CHAT)

Don’t take my word for it—let the performance do the talking. From my trading experience, the metrics never lie. Here are some leading Canadian AI ETFs based on their returns and asset stability.

There’s no guarantee I’ll trade any of these stocks. I’m watching them to see if they match my preferred setups — only then will I trade them.

The best traders watch more than they trade — that’s what I’m trying to model here.

Sign up for my NO-COST watchlist here!

Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ)

My first Canadian AI ETF pick is Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ).

The Global X tracks the Indxx Artificial Intelligence and Big Data Index. It offers a diversified approach by including firms that are integrating AI into their existing business models.

AIQ focuses on developed-market equities in the artificial intelligence and big data sectors. Managed passively, its selection criteria include scrutinizing public filings, company statements, and other relevant data. This fund operates with a market-cap-weighted strategy, re-weighing semi-annually and reconstituting annually.

VanEck Robotics ETF (NASDAQ: IBOT)

My second Canadian AI ETF pick is VanEck Robotics ETF (NASDAQ: IBOT).

The VanEck Robotics ETF (NASDAQ: IBOT) holds about 85 stocks, with top holdings including NVIDIA Inc. (NASDAQ: NVDA), Emerson Electric (NYSE: EMR), and ABB Ltd (NYSE: ABB). It has an expense ratio of 0.47%. The fund focuses on industrial automation, non-industrial automation, and autonomous vehicles.

IBOT provides exposure to global companies pioneering in commercial and industrial robotics. The fund’s holdings are determined by the revenue companies generate from this specific theme. Following a modified market-cap weighting, IBOT is oriented towards sub-industries such as robotic surgical systems, 3D printing, and machine vision. The portfolio weighting leans 50% to robotics/manufacturing, with the remaining divided among other related fields. Rebalancing occurs semiannually.

First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ: ROBT)

My third Canadian AI ETF pick is First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ: ROBT).

The First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ: ROBT) offers a blend of pioneering companies in AI and robotics. The ETF focuses on industry leaders.

ROBT employs the Consumer Technology Association’s system for its stock picks. Companies are categorized as enablers, engagers, or enhancers. Each category then receives a portfolio weight of 60%, 25%, and 15% respectively. The fund focuses on companies deeply involved in artificial intelligence or robotics, selecting the top 30 in each category. Rebalancing and reconstitution happen quarterly and semi-annually.

Defiance Quantum & AI ETF (NYSEARCA: QTUM)

My fourth Canadian AI ETF pick is Defiance Quantum & AI ETF (NYSEARCA: QTUM).

QTUM has top holdings that include Cirrus Logic (NASDAQ: CRUS) and Alteryx Inc. (NYSE: AYX). The ETF has an expense ratio of 0.40%.

QTUM tracks the BlueStar Quantum Computing and Machine Learning Index, covering around 71 global stocks in the field. This ETF gives traders access to companies excelling in quantum computing, machine learning, and cloud computing. The focus here is on transformative computing technologies across all market capitalizations.

Roundhill Generative AI & Technology ETF (NYSEARCA: CHAT)

My fifth Canadian AI ETF pick is Roundhill Generative AI & Technology ETF (NYSEARCA: CHAT).

The Roundhill Generative AI ETF focuses on next-gen AI technologies. The ETF invests in companies actively creating new AI technologies.

CHAT is targeted at companies involved in generative AI. The fund holds positions in software, cloud infrastructure, semiconductors, network infrastructure, and services. Nvidia, Microsoft, and Alphabet are among its major holdings, accounting for significant percentages in the portfolio. Nvidia’s chips power many AI solutions, while Microsoft collaborates with Nvidia on AI supercomputing projects. Alphabet is also heavily invested in AI technologies.

Overview of Leading AI ETFs in Canada

When I teach about trading, I emphasize understanding the market landscape. Each of these ETFs has its own unique focus, whether it’s software, hardware, or a mix of both. Know what you’re getting into.

Performance Analysis of Prominent AI ETFs

If you’ve followed my trading journey, you know I focus on performance. In AI ETFs, look for consistent returns, risk-to-reward ratios, and how the fund has managed during market downturns.

Factors to Consider When Investing in AI ETFs

Every savvy trader knows that you can’t dive in without understanding the pool. The AI industry is still young, with many potential ups and downs.

Understanding the Risks and Rewards

The AI industry is burgeoning, but it’s not without its risks. ETFs, while less volatile than individual stocks, still require a well-thought-out investment strategy.

Diversification and Portfolio Allocation

As a trader and teacher, I’ve always emphasized the importance of diversification. Don’t make AI your only play; it should be part of a diversified portfolio.

How To Invest in AI ETFs in Canada

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Ready to get started? You’ve got options. The steps to invest in AI ETFs are no different from buying other types of shares.

Steps to Start Investing

To get into AI ETF trading, you’ll need to set up a brokerage account. Then you’ll need to decide how much of your portfolio you want to allocate to this particular sector.

Platforms and Brokers Offering AI ETFs

There are plenty of platforms out there to facilitate your AI ETF purchases. From my experience teaching, the right platform can make all the difference.

Future Prospects of AI ETFs in Canada

Canada’s AI sector shows immense potential for growth. But remember, it’s not all roses. Stay tuned to market trends and adjust your strategies accordingly.

Predicted Growth and Trends in the AI Sector

With growing investments in AI by companies and the government alike, the industry is set for an upward trajectory. Keep an eye on this space; it’s one to watch.

Potential Challenges and Opportunities for Investors

Every industry has its hiccups, and AI is no exception. But for those who do their homework, the opportunities outweigh the challenges.

Key Takeaways

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You don’t need to be an AI expert to invest in these ETFs, but a basic understanding is essential. If you’ve been following my teachings, you know that diligence and strategy always pay off in the stock market. AI ETFs offer a unique combination of growth and diversification, but they should not be your only focus.

Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…

I’ve built my Trading Challenge to pass on the things I had to learn for myself. It’s the kind of community that I wish I had when I was starting out.

We don’t accept everyone. If you’re up for the challenge — I want to hear from you.

Apply to the Trading Challenge here.

Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.

What Canadian AI ETFs are on your watchlist? Let me know in the comments — I love hearing from my readers!

Frequently Asked Questions

How Do AI ETFs Differ from Traditional ETFs in Canada?

AI ETFs specifically focus on companies that are leaders in artificial intelligence. In my years of trading and teaching, I’ve seen enough to say that this focus can offer a unique set of rewards and challenges.

What Are the Tax Implications of Investing in AI ETFs?

Remember, the taxman cometh, even for AI ETFs. The tax implications are not drastically different from other stock market investments but consult a financial advisor to be sure.

Are AI ETFs Suitable for Long-Term Investment?

AI has been on a growth trajectory and it looks like it’s here to stay. Still, no investment is a ‘set it and forget it’ — and that includes AI ETFs. Always keep an eye on your portfolio and adjust as necessary.


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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”