My AI-Powered Investment Portfolio: A Deep Dive Into Tech ETFs and Income Strategies

Building wealth through artificial intelligence, robotics, and smart income generation

Introduction: Why I Bet Big on the Future

After years of watching traditional investment strategies deliver mediocre returns, I decided to take a different approach. My current portfolio of 14 ETFs represents a strategic bet on the technologies that will define the next decade, combined with sophisticated income strategies that help me sleep better at night.

This isn't your grandfather's buy-and-hold portfolio. It's a carefully constructed blend of artificial intelligence, robotics, emerging sectors, and income optimization that reflects my belief about where the world is heading. Let me walk you through each component and share what I've learned along the way.

The Core Philosophy: Riding the AI Wave

My Artificial Intelligence Powerhouse

The heart of my portfolio beats with artificial intelligence. I've allocated significant positions across three complementary AI-focused ETFs:

IGPT (Invesco AI and Next-Gen Software ETF) serves as my primary exposure to AI. This fund targets companies that develop and implement AI solutions across software applications. From cloud computing giants to specialized AI startups, IGPT gives me broad exposure to the entire AI ecosystem.

AIQ (Global X Artificial Intelligence & Technology ETF) complements this by casting a wider global net. While many AI investments focus on US companies, AIQ captures international opportunities in countries such as China, South Korea, and European nations that are also making significant AI investments.

ARTY (iShares Future AI and Tech ETF) complements my AI trinity, focusing on companies poised for the future of artificial intelligence. This includes not just today's AI leaders, but companies that could become tomorrow's AI powerhouses.

Benefits of My AI Strategy:

• First-mover advantage: Getting in early on transformative technology

• Diversification within the theme: Multiple funds reduce single-company risk

• Professional curation: Fund managers identify AI opportunities I might miss

• Liquidity: ETF structure allows easy entry and exit

Disadvantages I've Accepted:

• Hype risk: AI valuations may be inflated by media attention

• Technology uncertainty: Not all AI companies will succeed

• Concentration risk: All three funds may decline together

• High valuations: Many AI stocks trade at premium multiples

Robotics: The Physical Side of AI

BOTZ (Global X Robotics & Artificial Intelligence ETF) represents my bet on the physical manifestation of AI. While software gets the headlines, robotics companies are building the hands and bodies that will execute AI decisions in the real world.

From surgical robots revolutionizing healthcare to manufacturing automation increasing productivity, BOTZ captures companies at the intersection of hardware and intelligence. This fund has provided me with exposure to leaders in industrial automation, healthcare robotics innovators, and companies developing consumer robots.

Benefits of BOTZ:

• Tangible applications: Robotics has clear, measurable use cases

• Diverse industries: Exposure across healthcare, manufacturing, and consumer sectors

• Growing market: Aging populations and labor shortages drive robotics adoption

• Defensive moats: Robotics companies often have strong intellectual property

Disadvantages:

• Capital intensive: Robotics companies require significant R&D investment

• Slow adoption: Physical robots take longer to deploy than software

• Regulatory hurdles: Medical and industrial robots face strict regulations

• Competition from tech giants: Large companies may outspend smaller robotics firms

Income Generation: Making My Money Work Harder

The Premium Income Strategy

Rather than just hoping for capital appreciation, I've incorporated several income-focused ETFs that use sophisticated options strategies to generate regular cash flow:

JEPI (JPMorgan Equity Premium Income ETF) has become one of my favorite holdings. This fund combines equity exposure with covered call writing, generating enhanced income while still participating in the market upside. The monthly distributions have been remarkably consistent, providing a steady cash flow that I can reinvest or use for expenses.

GPIQ (Goldman Sachs NASDAQ-100 Core Premium Income ETF) employs similar strategies to the NASDAQ-100, providing me with tech exposure and income enhancement. This has been particularly valuable during volatile periods when the regular income helps offset price fluctuations.

Benefits of Premium Income ETFs:

• Regular cash flow: Monthly or quarterly distributions

• Professional management: Sophisticated options strategies I couldn't execute myself

• Volatility harvesting: Benefit from market volatility through options premiums

• Downside cushion: Premium income provides some protection during declines

Disadvantages:

• Capped upside: Covered calls limit participation in strong rallies

• Complexity: Options strategies can behave unexpectedly in extreme markets

• Tax implications: Income distributions may be taxed as ordinary income

• Timing risk: Options strategies depend on market timing

Targeted Income Plays

I've also incorporated some more specialized income strategies:

NVDY (YieldMax NVDA Option Income Strategy ETF) focuses specifically on NVIDIA, one of the most volatile and essential stocks in the AI sector. Given NVIDIA's significant price fluctuations, the options premiums can be substantial, albeit with considerable risk.

MRNY (YieldMax MRNA Option Income Strategy ETF) employs similar strategies to those used by Moderna. While biotech isn't my primary focus, the volatility in pharmaceutical stocks creates interesting income opportunities.

QQQY (Defiance NASDAQ-100 Enhanced Options Income ETF) offers an alternative approach to tech income, employing more aggressive options strategies that can generate higher yields but with added complexity.

Benefits of Targeted Income Strategies:

• High yield potential: Volatile stocks generate substantial options premiums

• Specific exposure: Target individual companies or sectors

• Income during sideways markets: Generate returns even when stocks don't appreciate

Disadvantages:

• Single-stock risk: Concentrated exposure to individual companies

• Extreme volatility: These strategies can experience dramatic swings

• Complexity: It is difficult to predict how they'll perform in different market conditions

• Potential capital loss: Focus on income may lead to significant principal erosion

Diversification and Stability

Broad Market Anchors

While I'm bullish on technology, I've maintained some traditional market exposure for stability:

SPLG (SPDR Portfolio S&P 500 ETF) offers cost-effective broad market exposure at an expense ratio of just 0.02%. This ensures I don't miss out on overall market growth and provides some balance to my thematic bets.

DIA (SPDR Dow Jones Industrial Average ETF) gives me exposure to established blue-chip companies. While the Dow might seem old-fashioned, these companies often provide steady dividends and stability during market turbulence.

Benefits of Broad Market Exposure:

• Diversification: Exposure beyond my thematic investments

• Lower volatility: Established companies tend to be more stable

• Dividend income: Many traditional companies pay regular dividends

• Benchmark performance: Ensures I capture general market returns

Disadvantages:

• Limited upside: Broad market exposure may underperform focused themes

• Dilution: Reduces the impact of my high-conviction bets

• Overlap: Some holdings may duplicate positions in thematic ETFs

Alternative Opportunities

CNBS (Amplify Seymour Cannabis ETF) represents my most speculative position. While cannabis remains federally illegal in the US, state-level legalization continues expanding, and international markets are opening up. This is a small position that could pay off significantly if federal legalization occurs.

EARN (Ellington Credit Company) and BCAT (BlackRock Capital Allocation ETF) provide exposure to credit opportunities and dynamic asset allocation, respectively. These help round out my portfolio with different return drivers.

Benefits of Alternative Investments:

• Diversification: Different return drivers from traditional assets

• Opportunity: Early exposure to emerging industries

• Professional management: Access to strategies I couldn't implement alone

Disadvantages:

• Regulatory risk: Cannabis faces ongoing legal uncertainties

• Liquidity concerns: Some alternative investments may be harder to sell

• Complexity: It is difficult to evaluate and understand all risks

Portfolio Performance and Lessons Learned

What's Working Well

The AI-focused portion of my portfolio has generally performed well, particularly during periods when artificial intelligence dominates headlines. The income components have provided steady cash flow, which I've been able to reinvest during market dips.

The diversification within themes has helped reduce single-stock risk while maintaining conviction in my investment thesis. Having multiple AI funds, for example, has protected me when individual holdings within one fund have not performed well.

Challenges I've Faced

Volatility: This portfolio exhibits significant fluctuations, particularly in its technology-heavy components. During tech sell-offs, multiple positions decline simultaneously, reducing the diversification benefits.

Complexity: Managing 14 different ETFs requires constant monitoring and understanding of each fund's strategy. The options-based income funds, in particular, can behave in unexpected ways.

Correlation: During market stress, many of my positions move in tandem, suggesting that my diversification may be less effective than I initially anticipated.

Tax implications: The various income strategies generate different types of distributions, complicating tax planning.

Navigating Current Geopolitical Headwinds

Trump's Tariff Policies and Trade Tensions

The current administration's aggressive tariff stance has created both opportunities and challenges for my portfolio. On the one hand, tariffs on Chinese technology imports could benefit US-based AI and robotics companies held within my ETFs. Companies like those in IGPT and ARTY might see reduced competition from Chinese rivals, potentially improving their market position.

However, tariffs also create significant risks. Many of the technology companies in my AI-focused holdings rely on global supply chains. Components for AI chips, robotics hardware, and advanced manufacturing often come from international suppliers. Higher input costs from tariffs could compress margins and slow innovation across the entire sector.

The robotics holdings in BOTZ face particular challenges, as manufacturing robots often require specialized components that may be subject to tariff increases. This could slow adoption rates as customers face higher prices for automated solutions.

From a portfolio perspective, I'm watching for:

• Supply chain disruptions affecting AI and robotics companies

• Retaliatory measures that could hurt US technology exports

• Currency volatility impacting international holdings in AIQ

• Sector rotation as investors flee trade-sensitive stocks

Global Conflicts and Market Volatility

The ongoing conflicts in Ukraine, Middle East tensions involving Iran and Israel, and broader regional instability have created a challenging investment environment that affects multiple aspects of my portfolio.

Energy and Supply Chain Impacts: Conflicts in energy-producing regions drive oil prices higher, increasing costs for manufacturing companies within my robotics and AI holdings. Higher energy costs, particularly those affecting data centers running AI workloads, can potentially impact the profitability of companies in IGPT and ARTY.

Defense Technology Opportunities: Interestingly, some of the AI and robotics companies in my portfolio may benefit from increased defense spending. Military applications of AI, autonomous systems, and robotics see accelerated development during periods of geopolitical tension. Companies developing surveillance AI, autonomous defense systems, and military robotics could experience increased demand.

Flight to Quality vs. Growth: During periods of geopolitical uncertainty, investors often shift away from growth stocks (such as many AI companies) toward safer assets. This creates headwinds for my technology-heavy positions while potentially benefiting the income-focused components of my portfolio. The premium income strategies in JEPI and GPIQ become more valuable when markets are volatile, as higher volatility increases the premiums for options.

Currency and International Exposure: Global conflicts affect currency markets, which impacts my international AI exposure through AIQ. A stronger dollar (often seen during global uncertainty) can hurt international technology companies' competitiveness and affect their dollar-denominated returns.

Portfolio Resilience During Crisis

My income-focused positions have provided some stability during recent geopolitical volatility. The covered call strategies in JEPI and GPIQ generate premiums that help offset capital losses during market declines. The regular distributions from these funds provide cash flow that I can use to rebalance or add to positions when markets overreact to news.

However, I've learned that diversification within technology themes provides less protection than I initially expected. During the major sell-offs following escalations in global conflicts, all my AI positions declined together, highlighting the correlation risk inherent in thematic investing.

The cannabis position in CNBS has been particularly volatile during periods of geopolitical stress, as speculative investments often take the hardest hit when investors seek safety. This reinforces why I keep this as a small, speculative allocation.

Strategic Adjustments for Uncertain Times

Given the current environment, I'm considering several portfolio modifications:

Defensive AI Exposure: Looking at AI companies with more defensive characteristics, such as those providing essential services or holding strong competitive moats that make them less vulnerable to economic disruption.

Geographic Diversification: While maintaining my US technology focus, I'm exploring ways to reduce exposure to trade-sensitive supply chains through funds that emphasize domestic production or companies with diversified geographic footprints.

Income Emphasis: The volatile environment reinforces the value of my income-generating positions. I'm considering increasing allocations to premium income strategies that can benefit from higher volatility while providing steady cash flow.

Tactical Flexibility: Keeping more dry powder available to take advantage of volatility-driven opportunities, particularly during geopolitical sell-offs that may create attractive entry points.

The Road Ahead: Future Considerations

Looking forward, I'm considering several adjustments to improve the portfolio while accounting for the current challenging environment:

International exposure: Adding more international AI and technology exposure to reduce US concentration, though carefully evaluating trade risk implications.

Sector balance: Potentially reducing some AI overlap and adding exposure to other transformative trends like clean energy or biotechnology, while considering which sectors might benefit from current geopolitical dynamics.

Income optimization: Evaluating whether the complex options strategies are worth their costs and risks compared to simpler dividend-focused approaches, particularly given their value during volatile periods.

Rebalancing strategy: Developing a more systematic approach to rebalancing between growth and income components, with specific triggers for geopolitical events.

Crisis hedging: Considering small allocations to assets that might benefit from continued global instability, such as defense technology or energy infrastructure.

Final Thoughts: Is This Strategy Right for You?

This portfolio reflects my personal conviction that artificial intelligence and related technologies will drive significant wealth creation over the next decade. The income components help smooth the ride and provide cash flow during volatile periods.

However, this strategy isn't suitable for everyone. It requires:

• High-risk tolerance: Technology investments can be highly volatile

• Long-term perspective: Many of these themes may take years to develop fully

• Active management: Multiple ETFs require ongoing attention and potential rebalancing

• Comfort with complexity: Options strategies and alternative investments add complexity

If you're considering a similar approach, start small and build gradually. The world of thematic ETFs and income strategies offers numerous opportunities, but also presents countless ways to make costly mistakes.

The future belongs to those who invest in it today. While I can't predict which AI companies will dominate or how quickly robotics will transform industries, positioning for these trends while generating income along the way gives me the best chance of building long-term wealth.

Disclaimer: This article represents my personal investment strategy as a retail investor without formal financial training or professional credentials. The views expressed are based on my own research and experience, not professional expertise. This should not be considered financial advice. All investments carry risk, and past performance doesn't guarantee future results. As a non-professional investor, I strongly recommend that you conduct your own research and consider consulting with a qualified financial advisor before making any investment decisions. What works for my situation and risk tolerance may not be appropriate for yours.