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4 ETFs to Tap the Emergence of Disruptive Technology

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In the rapidly evolving environment of technology, the term "disruptive technology" has become a catchword, meaning innovation that significantly alters the way industries, businesses, and consumers operate. Disruptive technologies test the status quo, replacing established methods and creating new markets.

Some key examples of disruptive technologies currently undergoing a boom include Artificial Intelligence (AI) and Machine Learning (ML), Blockchain Technology, the Internet of Things (IoT), Renewable Energy Technologies, 3D Printing, Cybersecurity, Quantum Computing, and others.

Disruptive technologies like AI, genomics, and telemedicine are transforming healthcare. Fintech innovations, including blockchain, AI, and mobile payments, are redefining the financial sector. Autonomous vehicles, electric cars, and ride-sharing platforms are revolutionizing transportation.

E-commerce, augmented reality (AR), and AI-powered personalization has already started to disrupt the retail sector for quite a long time. Meanwhile, online learning platforms, AI-driven tutoring, and virtual reality (VR) are changing education system.

Cybersecurity protects information and systems from major cyber threats like terrorism, warfare, and espionage, targeting national assets, making it crucial for government security strategies. The Covid-19-led stay-at-home culture, in fact, emphasized and strengthened the need for certain forms of disruptive technologies even more.

Against this backdrop, below we highlight a few ETFs that can be used to ride out the emergence of disruptive technologies.

ETFs in Focus

ALPS Disruptive Technologies ETF (DTEC - Free Report)

This ETF invests in companies that are leading the way in disruptive technologies, spanning fields like artificial intelligence, robotics, and blockchain. With a diversified approach, DTEC offers exposure to a wide array of innovative firms and has an expense ratio of 0.50%.

GraniteShares Nasdaq Select Disruptors ETF (DRUP - Free Report)

It is an ETF that aims to invest in large-cap U.S. companies that are at the forefront of disruptive and technological advancements. The ETF focuses on companies that are recognized as leaders in disruptive innovation across various stages of their business lifecycle, including infancy, expansion, and maturity. It uses a multi-factor scoring model to select and rank these companies based on their "Disruption Scores"???. The fund charges 60 bps in fees.

ARK Innovation ETF (ARKK - Free Report)

This actively managed ETF focuses on companies involved in disruptive innovation across various sectors, including genomics, automation, and energy. Key holdings include Tesla, Square, and Spotify. ARKK is known for its high-risk, high-reward profile and has an expense ratio of 0.75%.

Global X Artificial Intelligence & Technology ETF (AIQ - Free Report)

The fund is designed to provide exposure to companies in developed markets that are positioned to benefit from the further development and deployment of artificial intelligence technology, as well as to companies that provide critical technology and services for the analysis of large and complex data sets. The fund charges 68 bps in fees.


 

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