Currently, the most pervasive form of artificial intelligence (AI), including what’s being adopted in the wealth management industry, is generative AI. Put simply, that’s the iteration of AI that uses generative models to produce images, text and videos.

While generative AI remains in its infancy and has plenty of kinks to work out, investors are predictably pondering what’s next in the realm of AI. That answer comes by way of what’s known as agentic AI, which like its generative counterpart, is easily explained.

“Agentic AI is an artificial intelligence system that can accomplish a specific goal with limited supervision. It consists of AI agents—machine learning models that mimic human decision-making to solve problems in real time,” according to IBM. “In a multiagent system, each agent performs a specific subtask required to reach the goal and their efforts are coordinated through AI orchestration. ”

Obviously, agentic AI is even more youthful than its generative relative, but that’s not stopping the always intrepid exchange traded funds industry from getting into the act. Enter the SoFi Agentic AI ETF (NYSE Arca: AGIQ).

Assessing AGIQ

AGIQ, which debuted on Sept. 4, is the fifth member of SoFi’s ETF lineup, a group led by the SoFi Select 500 ETF (NYSE Arca: SFY). The newly minted AGIQ follows the BITA US Agentic AI Select Index.

While it addresses an emerging corner of the AI universe, AGIQ isn’t overly exotic in terms of its holdings. Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA) and Palantir Technologies (NASDAQ: PLTR) – familiar fare across first generation AI ETFs – are AGIQ’s top three holdings, combining for more than 24% of the portfolio. Said another way, AGIQ takes a familiar approach to a budding AI concept.

“The emergence of agentic AI – autonomous systems capable of making decisions, initiating actions, and collaborating with other agents or humans – is marking a paradigm shift for its potential to drive real-world productivity gains across sectors,” according to a SoFi statement. “According to the World Economic Forum, the market for agentic AI is projected to expand significantly by 2030. ”

AGIQ, which charges 0. 69% annually, holds 30 stocks, but that doesn’t imply lack of diversity because the new ETF addresses both agentic AI enablers (chipmakers, hardware companies) and adopters (cybersecurity, industrials, research-intensive firms, etc. ).

AGIQ Could Be Future of AI ETFs

AI ETFs themselves are futuristic in nature, but AGIQ builds upon that concept. Think about it this way. For now, generative AI is the foundation while agentic AI is the frame of the structure residing on said foundation. The latter builds upon the former, indicating there’s a long runway of agentic AI growth because it has advantages over its generative relative.

“The most important advancement of agentic systems is that they allow for autonomy to perform tasks without constant human oversight. Agentic systems can maintain long-term goals, manage multistep problem-solving tasks and track progress over time,” adds IBM.