iShares Exponential Technologies ETF [XT] Stock Forecast

iShares Exponential Technologies ETF offers exposure to companies driving technological advances across various sectors globally. The XT ETF provides diversification with over 190 holdings, minimizing specific company risk. The fund invests in both developed and emerging markets, potentially benefiting from global growth trends.

XT invests in companies recognized as innovators, capitalizing on disruptive technologies. The rules-based strategy has lagged behind passively indexed equity benchmarks. We are bullish on stocks but do not recommend the XT ETF.

Over the last several years, we've heard plenty of talk about artificial intelligence. There's even debate about whether AI will ever become sentient and decide to destroy humanity.

XT has a fair bit of AI exposure, through semiconductor and software companies, that has been driving its returns ahead of a typically weighted US index. We think that longer-term, the AI hype is overdone and generative AI won't make quite the dislocating impact that some expect. Still, everyone is going to chase it, because all businesses need to pay the premium for the AI business option.

Technology stocks have been and continue to be market-leading names for good reason. But not every tech stock is worth owning.

Cathie Wood picks this stock for her AI play in the ARK Autonomous Technology & Robotics ETF (ARKQ).

XT and ARKK both seek to profit from investing in innovative companies. But they take different approaches to do that. ARKK is wildly popular and controversial. Cathie Wood, its founder, is a media star, thanks to ARKK's dramatic performance in 2020. But ARKK is down about 75% since then.

XT is levered to a lot of healthcare stocks, skewed towards earlier stage, that are more equity market dependent. Otherwise there are a lot of tech companies that will be levered to bullish sentiment in general due to high beta.

iShares Exponential Technologies ETF tracks the Morningstar Exponential Technologies Index. We like XT much better than the more-famous/infamous ARKK ETF, which we consider to be an XT peer. Exponential technologies replace outdated technologies, penetrate untapped markets, and provide the latest technological advancements.

XT offers targeted exposure to the leading technology themes that are transforming the global economy, with a nicely diversified portfolio of 195 U.S. and international stocks in the current version. The themes the portfolio is supposed to provide exposure to range from big data & analytics and cloud computing to hyperconnectivity, nanotechnology, robotics, etc.

iShares Exponential Technologies ETF is a US stock and trading under the symbol XT

iShares Exponential Technologies ETF stock price is $56.0274 today.

Yes, iShares Exponential Technologies ETF is a publicly traded company.