| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 294.53 | 1202 |
| Intrinsic value (DCF) | 7.46 | -67 |
| Graham-Dodd Method | 20.41 | -10 |
| Graham Formula | 436.80 | 1830 |
Virtus Artificial Intelligence & Technology Opportunities Fund (AIO) is a diversified, closed-end management investment company focused on capitalizing on the transformative potential of artificial intelligence (AI) and emerging technologies. Managed by Virtus Investment Advisers and subadvised by Voya Investment Management, AIO seeks to generate stable income and capital growth by investing in a broad spectrum of AI-driven and tech-enabled opportunities across multiple sectors. The fund targets disruptive innovations, positioning itself as a unique vehicle for investors seeking exposure to AI and next-gen technology trends within the financial services sector. With a market cap of approximately $774 million, AIO provides a specialized investment approach in the rapidly evolving AI landscape, differentiating itself from traditional asset management funds. Its strategy aligns with long-term secular growth trends, making it relevant for investors looking to diversify into high-growth technological advancements.
AIO presents an attractive investment opportunity for those seeking exposure to AI and technology-driven growth while benefiting from income generation. The fund's focus on disruptive technologies positions it well for long-term capital appreciation, supported by a solid EPS of $4.71 and a dividend yield of approximately 3.8% (based on a $1.80 annual dividend). However, its beta of 1.11 suggests moderate volatility, and its closed-end structure may lead to trading at premiums or discounts to NAV. The absence of debt is a positive, but investors should consider the fund's reliance on AI sector performance, which may be subject to regulatory and competitive risks. Overall, AIO is suitable for investors with a higher risk tolerance seeking tech-focused income and growth.
AIO differentiates itself by specializing in AI and technology opportunities, a niche not heavily covered by traditional closed-end funds. Its competitive advantage lies in its dual focus on income and growth through tech-driven investments, managed by experienced advisors Virtus and Voya. Unlike broader tech funds, AIO targets AI-specific disruptors, providing a more concentrated exposure to this high-growth segment. However, its closed-end structure may limit liquidity compared to open-end funds or ETFs. The fund's performance is closely tied to the AI sector's evolution, which is both an opportunity and a risk given the rapid pace of innovation and competition. AIO's lack of leverage (zero debt) is a strength, reducing financial risk, but its ability to outperform depends heavily on stock selection in a crowded and volatile tech investment landscape. Compared to peers, AIO's unique mandate could attract investors seeking pure-play AI exposure, though it faces competition from tech-focused ETFs and mutual funds with lower fees.