Hancock Prospecting Bets Big on Global X Artificial Intelligence and Technology ETF: Should Investors Buy Too?

While Hancock Prospecting’s investment in the X Global Artificial Intelligence and Technology ETF (AIQ) may seem like a major deal, it is worth noting that its tech-heavy QQQ holding remains 10 times its size.

Yes, it is an additional bet on the technology sector, but not a massive one, comparatively speaking.

That said, AIQ is up 30% over the last year, outpacing QQQ’s returns of 21% and even the S&P 500’s Technology Sector’s 24% mark.

However, since 2018, AIQ has lagged the returns of these two peers, so its track record is still being developed.

While I certainly understand Hancock’s interest in gaining exposure to the world of AI, most of AIQ’s largest holdings are a who’s-who of the major tech companies out there today.

I’m not sure it offers a significant amount of pure-play AI upside compared to simply holding QQQ.

Furthermore, AIQ’s expense ratio is 0.68% compared to QQQ’s 0.2%, and its 0.12% dividend yield is one-quarter of QQQ’s. Additionally, it holds a higher beta, meaning it is slightly more volatile than its tech-focused peer.

Ultimately, AIQ is a solid choice for gaining some exposure to the AI space. However, I’d rather buy my favorite AI stocks individually or purchase QQQ as a whole, due to its higher expense ratio and minimal differentiation from the major tech stocks.

13F reportable assets under management (AUM): The portion of a fund’s assets required to be disclosed in quarterly SEC Form 13F filings.Net position change: The difference in the value or number of shares held in a security after recent transactions.Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.Forward price-to-earnings ratio: A valuation metric comparing a company’s current price to its projected future earnings per share.Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.Non-diversified structure: A fund investing heavily in a limited number of securities or sectors, increasing potential risk and reward.Thematic exposure: An investment strategy that focuses on specific trends or themes, such as artificial intelligence or technology innovation.Equity securities: Financial instruments representing ownership in a company, such as common or preferred stock.Index tracking: An investment approach aiming to replicate the performance of a specific market index.Stake: The amount or percentage of ownership an investor holds in a particular security or fund.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $465,781!*

Apple: if you invested $1,000 when we doubled down in 2008, you’d have $54,057!*

Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $560,649!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of December 1, 2025

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials and Teck Resources. The Motley Fool has a disclosure policy.

Hancock Prospecting Bets Big on Global X Artificial Intelligence and Technology ETF: Should Investors Buy Too? was originally published by The Motley Fool