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The world stands on the precipice of an artificial intelligence (AI) revolution that promises to reshape the global economy and redefine the boundaries of innovation. While AI has recently taken center stage in the investing world, the true potential of this transformative technology has yet to be fully unleashed.

In the coming years, AI is poised to catalyze a wave of game-changing advancements across industries, opening up entirely new markets and fundamentally altering the human experience. Two key areas stand out as prime targets for AI-driven disruption: medicine and robotics. The convergence of AI with these fields is expected to ignite a period of hyper-innovation, propelling us into an era of unprecedented technological progress.

How can you gain exposure to this powerful trend?

Vanguard exchange-traded funds (ETFs) are attractive vehicles. With their low costs and diverse holdings, these funds provide a convenient and accessible means of gaining exposure to the companies at the epicenter of the AI revolution.

Two Vanguard ETFs, in particular, are perfectly positioned to benefit from the next phase of AI-driven innovation: the Vanguard Health Care ETF (NYSEMKT: VHT) and the Vanguard Information Technology ETF (NYSEMKT: VGT). Read on to find out more.

Vanguard Health Care ETF: A top vehicle to ride the AI wave in human medicine

The integration of AI into the healthcare sector is poised to usher in a new era of medical breakthroughs, with the potential to dramatically extend human life spans by decades or more. As AI-powered tools and algorithms become increasingly sophisticated, they're enabling researchers to unlock the secrets of aging, disease, and regeneration at an unprecedented pace.

One of the most promising applications of AI in healthcare is in the realm of drug discovery and development. By leveraging machine-learning algorithms to analyze vast amounts of biological data, pharmaceutical companies can identify promising drug candidates more efficiently than ever before.

This breakthrough not only accelerates the process of bringing new treatments to market, but also opens up the possibility of developing targeted therapies for previously intractable diseases, as well as medicines designed for a single individual (personalized medicine).

The Vanguard Health Care ETF is a top vehicle to play this trend. This ETF provides exposure to a diverse portfolio of 412 healthcare stocks, including many of the leading companies at the forefront of AI innovation in the sector.

With an expense ratio of just 0.10% and a dividend yield of 1.35%, the Vanguard Health Care ETF offers a cost-effective and efficient way to gain broad exposure to the infusion of AI into the healthcare sector.

Vanguard Information Technology ETF: At the epicenter of the AI and robotics revolution

AI is poised to revolutionize the field of information technology and related areas, such as robotics. For investors seeking exposure to these transformative trends, the Vanguard Information Technology ETF is worth considering.

This ETF holds a diverse portfolio of 313 stocks and sports an ultra-low expense ratio of 0.10%, making it a cost-effective investment vehicle. Additionally, the fund offers a 30-day SEC yield of 0.53%, which is respectable for a high-growth category.

However, it's important to consider that the Vanguard Information Technology ETF has experienced a remarkable 485% surge over the past 10 years. As a result, the fund's average price-to-earnings ratio stands at 33.9, significantly higher than the S&P 500 index's 24.7 multiple. From this vantage point, the fund may appear expensive.

Yet the rapid pace of advancements in AI and robotics suggests that the Vanguard Information Technology ETF's valuation may be justified. The marriage of AI with cutting-edge robotics is already underway and has the potential to disrupt industries and create unprecedented opportunities for growth.

In a recent keynote speech, Nvidia's CEO Jensen Huang outlined a compelling case for AI-driven breakthroughs, suggesting they could unlock a staggering $100 trillion market opportunity. If his prediction proves accurate, information technology and robotics stocks are likely to experience a period of extraordinary growth.

The Vanguard Information Technology ETF is well-positioned to capitalize on this AI-robotics revolution. So despite its lofty valuation, this ETF's long-term capital appreciation prospects remain compelling.

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George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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