The ASX-listed exchange-traded fund (ETF) Global X Fang+ ETF (ASX: FANG) could be one of the most effective ways for Aussies to get exposure to the artificial intelligence (AI) investment theme.
Australia’s stock market is known for industries like ASX bank shares and ASX mining shares. For Aussies wanting to get exposure to AI, ASX ETFs can enable us to indirectly invest in global businesses that are listed in other countries.
Which global shares are involved in AI?
There are a growing number of businesses that are developing and offering AI services, while many more are talking about utilising AI in their operations. Not every company is going to do well out of the technology shift, but there are a few businesses that have significant exposure to artificial intelligence growth.
For example, Nvidia offers graphic processing units (GPUs) that are key to the current boom of AI infrastructure. Nvidia’s products are important in places like data centres, while Nvidia’s software is being used by developers to program GPU chips.
Microsoft has introduced a number of AI features across its various products, including Copilot. It has a significant stake in OpenAI, the business behind ChatGPT and its various versions. Azure, Microsoft’s cloud computing platform, is being used by clients to create AI applications.
Alphabet has its own AI offering called Gemini after changing its name from Bard earlier this year. The self-driving robotaxi service Waymo, owned by Alphabet, was recently expanded to everyone in San Francisco and Phoenix.
Apple recently announced its devices would include AI.
Broadcom has a number of hardware items needed for AI, including networking chips, GPUs and processors.
Why the FANG ETF can provide strong exposure to AI
The FANG ETF only invests in ten different US stocks, which are some of America’s strongest and technologically-focused companies. It owns a stake in some of the companies I just mentioned.
Each of the positions has a weighting of around 10% within the ASX ETF:
- Alphabet (10.7% of the portfolio)
- Meta Platforms (10.4%)
- Amazon (10.3%)
- Tesla (10.3%)
- Microsoft (10.25%)
- Netflix (10%)
- Snowflake (9.9%)
- Apple (9.9%)
- Nvidia (9.4%)
- Broadcom (8.9%)
While AI shares aren’t the only stocks worth investigating, this is certainly an area that is generating significant revenue growth and attracting investor attention.
The ASX ETF has a reasonable management fee of 0.35%, which isn’t bad considering the high level of exposure to these tech stocks we can get.
Past performance is not a reliable indicator of future performance and certainly not a guarantee. The FANG ETF has delivered an average annual return of 21% over the past three years. If AI keeps generating revenue growth for these companies, it’s possible they could keep performing as long as their valuations don’t become overstretched.
The post Why this ASX ETF is one of the best ways to invest in artificial intelligence (AI) appeared first on The Motley Fool Australia.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Foolâs board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Foolâs board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, Snowflake, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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