Artificial intelligence is driving one of the largest capital spending cycles in market history, yet most AI investment strategies focus on surface level exposure rather than true innovation. In this Lead-Lag Deep Dive, Melanie Schaeffer sits down with Aram Babikian of Xtrackers to examine how AI investing is evolving and why research intensity and patent activity may matter more than headlines.

The discussion breaks down the structure behind XAIX, an AI focused ETF designed around companies that are actively building, protecting, and monetizing innovation. Babikian explains how patent filings and R and D spending act as forward looking signals, why unexpected companies like major banks appear in AI portfolios, and how this approach differs from more crowded thematic strategies.

They also explore how XAIX fits alongside broader technology exposure, the tradeoffs between concentration and diversification, and how advisors think about incorporating AI into portfolios amid volatility, regulation, and rapid technological change.

In this episode:
Why AI investing is not the same as buying tech stocks
How patent activity and R and D spending identify true innovators
Why non tech companies can be major AI beneficiaries
How XAIX differs from broader thematic AI exposure
How investors think about sizing AI allocations responsibly

Lead-Lag Deep Dive is a weekly series that breaks down the forces reshaping global markets. Each episode goes beneath the surface of one critical theme, examining how strategies are built, where risks hide, and what matters most for investors across cycles and asset sizes. Subscribe for research-driven insight beyond the noise.

#AI #ArtificialIntelligence #ThematicInvesting #ETFS #PortfolioStrategy #Finance #MacroTrends

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