U.S. Secretary of the Treasury Janet Yellen, who is also the Financial Stability Oversight Council (FSOC) Chair, called AI an "emerging threat" to financial stability. Yellen sees a need to curb the technology's potential market risks.

The increasing reliance on this emerging technology is considered a "vulnerability" and Yellen believes existing regulations should be used to curb the potential market risks that financial markets might become exposed to eventually.

Related: Artificial Intelligence Pegged As Financial Risk By US Regulators

AI Driving Stocks Higher

Meanwhile, artificial intelligence (AI) became a household name. It has been driving many technology stocks this year to new highs: NVIDIA Corp (NASDAQ:NVDA), Advanced Micro Devices Inc. (NASDAQ:AMD), Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL), Microsoft Corp (NASDAQ:MSFT) and Broadcom Inc (NASDAQ:AVGO), to name a few.

Related Reads:

• Nvidia CEO Says Artificial General Intelligence Could Be A Reality In Five Years: 'There's A Whole Bunch Of Things That We Can't Do Yet'
• AMD Is Set To Challenge Nvidia's Dominance And Amazon Is Going After Microsoft's Early-Start AI Advantage
• Analyst Confidence Skyrockets in Broadcom: A Glimpse into Its Lucrative AI Future?

Artificial Intelligence ETF Holders Are Richer By 37%

ETFs specifically investing in artificial intelligence have also had a good run this year. Investors in the earliest and largest artificial intelligence ETF, the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) are richer by 37% this year. This surge was driven by performances of Nvidia and Intuitive Surgical Inc (NASDAQ:ISRG); which together account for about 25% of the ETF's portfolio. The ETF was launched in September 2016 and has accumulated about $2.4 billion assets under management.

3 other AI ETFs have returned more than 37% YTD to investors:

Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares ETF (NYSE:UBOT) is a leveraged AI ETF, launched in April 2018. The ETF has $30 million in AUM and was up over 68% YTD.

Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ) was launched in May 2018. The fund has $842 million in AUM and is up about 53% YTD.

WisdomTree Trust WisdomTree Artificial Intelligence and Innovation Fund (BATS:WTAI) was launched in December 2021 and has about $190 million in AUM. The ETF is up over 45% YTD.

There are 3 other AI ETFs that are worth a mention:

Exchange Traded Concepts Trust ROBO Global Robotics and Automation Index ETF (NYSE:ROBO) has $1.32 billion in AUM. The fund was up over 20% YTD. The fund launched in October 2013.

iShares Robotics and Artificial Intelligence Multisector ETF (NYSE:IRBO), a June 2018 launch has accumulated $569 million in assets already. The ETF was up 33% YTD.

First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ:ROBT) with $472 million in AUM, was up over 25% YTD. The fund was launched in February 2018.

Read Next: Generative AI Is As Transformative As The Telephone, Bank Of America Says: 10 Stock, ETF Trading Ideas

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