Canadian buyers seeking to put cash to work generally surprise how you can finest faucet into the explosive progress of the expertise sector. Whereas Canada is a hub for innovation, the TSX is notoriously gentle on pure-play expertise shares. That is the place exchange-traded funds (ETFs) change into a robust horizon-broadening instrument. They bundle a group of shares, a few of them worldwide, right into a single ticker you should buy and promote like a inventory. After sifting by expertise ETFs on the TSX, one fund stands out as my clear favorite for a multi-year progress story: CI World Synthetic Intelligence Fund ETF (TSX:CIAI).
Why CIAI catches the attention of progress buyers
Launched simply final 12 months, the CI World Synthetic Intelligence Fund ETF has already made a major splash. It has swiftly gathered about $900 million in web property, demonstrating sturdy investor attraction. However what really makes it a high Canadian progress ETF to purchase in September is its laser concentrate on the only most transformative drive in expertise at the moment: synthetic intelligence (AI).
AI is essentially reshaping how companies and societies function globally. Getting publicity to the businesses main this cost is a compelling long-term technique for Canadian buyers. CIAI affords a direct ticket to that very alternative, and its current efficiency speaks volumes. As we method the ultimate quarter of 2025, the ETF has gained a powerful 17% over the previous three months and is up a outstanding 36% over the previous 12 months.
An actively managed method to a dynamic theme
In contrast to many ETFs that passively observe a predefined index, CIAI is actively managed. This implies a devoted workforce of execs at CI World Asset Administration is consistently researching and deciding on corporations they imagine are finest positioned to learn from AI. The workforce’s aim is to maximise long-term capital progress by investing in companies concerned within the analysis, improvement, and real-world software of AI applied sciences. This hands-on method could be a vital benefit in a fast-moving expertise area, the place at the moment’s chief is perhaps overtaken by a brand new innovator tomorrow.
By investing in CIAI, you’re primarily shopping for the experience of a workforce with deep analysis sources to establish the true AI pioneers.
A portfolio full of international AI leaders
Traders in CIAI purchase a concentrated portfolio of predominantly U.S. and worldwide expertise giants. The fund supervisor allocates a whopping 88.8% of the fund to U.S. shares, giving Canadians quick access to international tech leaders. Pure expertise shares make up 81% of the portfolio. Traders craving publicity to the most popular names in AI will discover them right here.
Chipmaker Nvidia, a cornerstone of the AI revolution, was the highest holding with a 12.5% weighting going into September. Whereas CI World Asset Administration doesn’t reveal the present variety of holdings, the highest 10 holdings accounted for about 73% of the portfolio lately, chosen on a high-conviction technique targeted on what the managers imagine are one of the best AI alternatives.
Low-cost entry for a high-growth potential
A vital issue for any ETF is its value, often called the administration expense ratio (MER). This annual charge covers the fund’s working bills and instantly impacts your returns. CIAI made headlines at its launch by providing the bottom administration charge in its class. Whereas the usual charge is 0.55%, CI carried out a charge waiver, bringing it down to simply 0.20% till the fund’s first anniversary or till it hits $1 billion in property. The MER was 0.39% on the finish of 2024, which remained very aggressive for an actively managed fund targeted on a specialised theme. Maybe this helped pace up fundraising efforts.
Provided that the primary anniversary is behind us, the MER ought to rise in 2025 and past if it matches different AI-focused ETFs within the U.S., with common MERs of 0.68%, or $6,80 on each $1,000 invested yearly. This cheap value method means extra of your cash is working for you, not going towards charges.
Investor takeaway
The CI World Synthetic Intelligence Fund ETF is a high funding asset for long-term, growth-oriented buyers who perceive that top potential returns include increased threat. It’s a strategic wager on the multi-year growth of AI that’s managed by professionals who’re devoted to navigating this advanced expertise panorama. CIAI presents a compelling, one-ticket resolution to personal the businesses constructing an clever future to Canadian buyers looking for a favorite tech ETF to anchor the expansion portion of their portfolios this September and for years forward.
