How to invest in AI?

Innovation is one of the most important points for economic growth and global competitiveness. Investing in new trends is probably a desirable goal for many. However, positioning yourself in the companies at the frontier of technology is complex and is typically reserved for high-net-worth and sophisticated investors.

There is a natural phenomenon we often overlook.

For example, investing in cryptocurrencies was complex at first for the most novice.

However, Tesla (a company present in the U.S. indices) added USD 1.5 billion of Bitcoin in 2021, providing indirect exposure to these assets. Thus, many gained some crypto exposure in their portfolios—in perspective, more than enough.

The new diva: Artificial Intelligence. Despite being methodologies that have existed for decades, we are currently in a boom of this type of solution. Thus, ChatGPT was bought by Microsoft (5% of the S&P 500).

Perhaps the best way to invest in new global trends is to maintain a diversified portfolio with exposure to the market in aggregate. The natural recomposition of the indices will allow us to benefit from innovation without taking unnecessarily high risks.

This column was originally published in El Mercurio Inversiones [LINK] on 10–03–2023