I assume you’re not a fan of the LRNZ deep learning-focused ETF, since it includes both NVDA and a lot of datacenters (not to mention the terrible 2022 performance). Are there any other ETFs focused on this sort of thing that look better?
I don’t look very much at industry-specific ETFs. They’re often weighted by market cap, which is generally bad (it tends to weight highly stocks that are in bubbles). Often the larger companies that get included are not at all pure plays on the ETF’s theme. For LRNZ’s top holdings: SNOW looks like it might be helped by AI, but I don’t understand it well enough to bet on that; CRWD looks more likely to be hurt by competition from AI than helped.
And with LRNZ, price/sales ratios are quite high.
I assume you’re not a fan of the LRNZ deep learning-focused ETF, since it includes both NVDA and a lot of datacenters (not to mention the terrible 2022 performance). Are there any other ETFs focused on this sort of thing that look better?
I don’t look very much at industry-specific ETFs. They’re often weighted by market cap, which is generally bad (it tends to weight highly stocks that are in bubbles). Often the larger companies that get included are not at all pure plays on the ETF’s theme. For LRNZ’s top holdings: SNOW looks like it might be helped by AI, but I don’t understand it well enough to bet on that; CRWD looks more likely to be hurt by competition from AI than helped. And with LRNZ, price/sales ratios are quite high.
There’s SOXX, which is a cap-weighted semiconductor ETF and SOXL which is a 2x leveraged version of SOXL.