This AI Fund's 7.3% Payout Looks Tempting (Here's Why We're Out)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 16 2025
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Source: NASDAQ.COM
Recommendation Against AIO: Despite the Virtus Artificial Intelligence & Technology Opportunities Fund (AIO) offering a strong 7.3% yield and solid management, it is advised to sell now due to high valuation and potential market volatility risks.
Alternative Investment Options: Investors are encouraged to explore four other AI-driven funds that provide better value and growth potential than AIO, which are currently recommended for purchase.
Analyst Views on AIO
Wall Street analysts forecast AIO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AIO is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 23.250
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Current: 23.250
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About AIO
Virtus Artificial Intelligence & Technology Opportunities Fund (the Fund) is a diversified, closed-end management investment company. The Fund seeks to generate a stable income stream and growth of capital by focusing on one of the most significant long-term secular growth opportunities in markets. The Fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in a combination of securities issued by artificial intelligence companies and in other companies. The Fund invests in a growing universe of opportunities across a broad spectrum of technologies and sectors embracing the disruptive power of artificial intelligence and other new technologies. The Fund's investment advisor is Virtus Investment Advisers, Inc., and its investment subadvisor is Voya Investment Management Co. LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
