This is an actively managed thematic ETF that selects companies providing AI infrastructure, such as semiconductors and cloud computing, as well as companies adopting artificial intelligence to strengthen their competitiveness. It offers exposure across the entire AI value chain.

It suits growth-oriented investors who want to invest in the artificial intelligence theme through active selection and are willing to accept theme concentration and growth stock volatility.

It is an ETF run with an active management approach by Algert.

The fund actively selects both companies that provide AI infrastructure, such as semiconductors and cloud computing, and companies that adopt artificial intelligence to improve their competitiveness. The management team evaluates who stands to benefit from AI growth and picks stocks accordingly. Rather than simply tracking an index, it takes an active approach, seeking excess returns across the entire AI value chain through proactive selection.

• A combination of AI infrastructure and adopter companies
• Active selection based on fundamentals

Assets under management (AUM) stand at $2.4B, and the total expense ratio is 0.58% per year.

Compared with plain index-based AI thematic ETFs, the main points of comparison are its active selection method and its combination of infrastructure and adopter companies.

Companies tied to artificial intelligence react sensitively to technological progress, investment expansion, and market risk appetite. They tend to be strong when expectations for AI growth come to the fore and weak when growth stocks correct. Because of its theme concentration and growth orientation, volatility tends to be high.

Fund flows into AI thematic products diverge depending on growth stock preference, the technology investment environment, and risk appetite, and money sometimes moves into this group of products when expectations for AI growth rise. It is also worth noting that performance can vary widely with the pace of technological progress and market conditions.

Active selection across the AI value chain is its strength, while theme concentration, growth stock volatility, and reliance on management are considerations.

For simpler exposure to the AI theme, direct substitutes include AIQ, and for a focus on robotics and automation, products such as BOTZ are also worth comparing. To broaden out to software as a whole, products such as IGV can be considered as well. The three products shown in the table, DYNF, ARKK, and THRO, take approaches different from the AI theme, using factor rotation, innovation, and theme rotation strategies respectively, so they serve mainly as reference points. This ETF's differentiator is its active selection of AI infrastructure and adopter companies.

Here are the points to review before investing in ALAI. Active AI selection is appealing, but theme concentration, growth stock volatility, and reliance on management should be checked in advance. It is also a good idea to compare it with plain index-based AI products.

Shifts in expectations for AI growth, growth stock corrections, and theme concentration are the main variables for short-term performance, and results depend heavily on the management team's selections. Given its growth-focused, theme-concentrated nature, drawdowns can be large during market crashes.

It is a suitable candidate for growth-oriented investors who want to invest in the artificial intelligence theme through active selection. If plain index-based AI exposure is the priority, products such as AIQ and BOTZ fit, while if you trust active selection across the AI value chain, it is advisable to compare this product alongside them before choosing.