ETF Guide on Regolith: How to Build a Balanced Portfolio with Leading Funds

An ETF (Exchange-Traded Fund) is an investment vehicle that combines shares of dozens or even hundreds of companies into a single instrument. It trades on an exchange like a regular stock, but instead of owning one company, you gain exposure to an entire portfolio. Today, ETFs are used by both individual investors and major hedge funds – they are among the most widely used investment instruments in global markets.

On the Regolith platform, six ETFs are available, each selected to address different investment objectives – from capital preservation to targeted exposure to technology sectors. Below, we review each fund to help you determine the right allocation for your portfolio.

For more details on how ETFs work, why investors focus on the U.S. market, and which risks to consider, see our previous article.

Core Market Exposure: SPY

SPY (SPDR S&P 500 ETF Trust) is one of the most widely traded ETFs globally. It tracks the S&P 500 Index, providing exposure to 500 of the largest publicly listed U.S. companies. By purchasing SPY through Regolith, you gain exposure to all of them at once. 

Role in a Portfolio 
SPY is typically used as a long-term core holding. Its underlying portfolio includes industry leaders such as Apple, NVIDIA, Amazon, Walmart, JPMorgan, and Bank of America. Historically, the S&P 500 has delivered average annual returns of approximately 10%, although results vary from year to year.

Due to broad sector diversification and high liquidity, SPY is often considered the foundation of a diversified equity portfolio.

Artificial Intelligence and Technology: AIQ

AIQ (Global X Artificial Intelligence & Technology ETF) focuses on one of the fastest-growing segments of the U.S. market – artificial intelligence. The fund invests in companies developing AI-driven software, cloud infrastructure, and data analytics platforms.

Role in a Portfolio
AIQ includes key players such as Alphabet, Meta, and Adobe. As an ETF, it provides sector-wide exposure rather than concentration in a single company. If one issuer underperforms, broader industry growth can help offset individual company risk.

AIQ is suitable for investors who view artificial intelligence as a long-term structural trend and seek diversified access to this sector.

Robotics and Automation: BOTZ

BOTZ (Global X Robotics & Artificial Intelligence ETF) focuses on the physical application of advanced technologies – industrial robotics, manufacturing automation, and medical robotics.

Role in a Portfolio
The fund includes global leaders such as Teradyne, Intuitive Surgical, and Keyence. Rising labor costs and demographic shifts are driving long-term demand for automation. BOTZ can complement a core allocation by adding targeted exposure to industrial and medical innovation.

Precious Metals: GLTR

GLTR (abrdn Physical Precious Metals Basket Shares ETF) is backed by physical holdings of gold, silver, platinum, and palladium. Each share is backed by physical bullion held in secure vaults.

Role in a Portfolio
Precious metals historically show low correlation with equity markets. During periods of market stress, they often preserve value or appreciate. Gold is also widely viewed as a hedge against inflation. GLTR provides a defensive allocation that can help reduce overall portfolio volatility.

Semiconductors: SOXX

SOXX (iShares Semiconductor ETF) focuses on the semiconductor industry. It holds approximately 30 of the largest U.S. chip manufacturers – companies whose products power smartphones, electric vehicles, servers, and AI infrastructure.

Role in a Portfolio
The fund includes industry leaders such as NVIDIA, Broadcom, and AMD. As semiconductors form the backbone of modern technology, demand continues to expand alongside AI, cloud computing, and automation.

Compared to SPY’s broad diversification, SOXX offers concentrated exposure to a single high-growth sector. This creates higher upside potential during technology growth cycles, but also greater volatility during market corrections. The ETF structure reduces single-stock risk by spreading exposure across leading companies.

Biotechnology and Genomics: ARKG

ARKG (ARK Genomic Revolution ETF) is an actively managed fund focused on genomics and biotechnology. Its holdings include companies working on gene therapy, molecular diagnostics, and bioinformatics.

Role in a Portfolio
Key positions include CRISPR Therapeutics and Exact Sciences. Biotechnology performance is often driven by clinical results and regulatory approvals rather than macroeconomic cycles, providing diversification from traditional sectors.

Unlike index-tracking ETFs such as SPY or SOXX, ARKG is actively managed. The ARK Invest team selects and adjusts holdings based on proprietary research, which distinguishes it from passive index funds.

Building ETF-Based Strategies

Each ETF on the Regolith platform serves a specific role. By combining them, investors can construct portfolios aligned with their objectives.

Conservative Allocation:
Core position in SPY, significant allocation to GLTR, and a smaller allocation to AIQ or BOTZ. Emphasis on stability and inflation protection.

Balanced Allocation:
SPY as the foundation, GLTR for defense, and equal exposure to AIQ and BOTZ for growth. A blend of stability and innovation.

Aggressive Allocation:
Primary exposure to SOXX and ARKG, complemented by AIQ and BOTZ, with minimal allocation to SPY. Focused on technology and biotechnology leadership, with higher potential returns and higher volatility.

These examples illustrate possible structures rather than formal investment advice. Strategy selection depends on your objectives, investment horizon, and risk tolerance. On Regolith, you can combine ETFs in any proportion and adjust allocations as market conditions evolve.

By combining broad market exposure (SPY), defensive assets (GLTR), and targeted growth sectors (AIQ, BOTZ, SOXX, ARKG), investors can build a diversified portfolio within a single platform.