There are only a few dedicated artificial intelligence (AI) stocks, per se. Instead, the AI theme is best understood as a mix of different players across the technology sector.
One obvious component is semiconductor companies — the chipmakers that design and manufacture the advanced processors needed for AI applications. Familiar names in this space include Nvidia Corp. (ticker: NVDA) and Advanced Micro Devices Inc. (AMD).
These companies supply the hardware powering the software firms at the forefront of AI development, such as Microsoft Corp. (MSFT) through its partnership with OpenAI and Amazon.com Inc. (AMZN) with its stake in Anthropic.
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The AI ecosystem also includes technology-adjacent companies deploying AI solutions to tackle automation challenges. A prime example is Intuitive Surgical Inc. (ISRG), which uses AI to enhance the precision and efficiency of its robotic surgical systems.
If you’re looking to capture all three AI sub-themes — hardware, software and applications — along with other adjacent areas like cloud computing and data centers, a thematic exchange-traded fund (ETF) could be the ideal approach.
Thematic ETFs are built either through rules-based indexes or active management, providing diversified access to the AI megatrend.
“We’re in the early stages of the AI cycle, and proper diversification is extremely important — be it across company stages or geographies — because it’s difficult to pick a winner or two this early,” says Tejas Dessai, director of thematic research at Global X ETFs. “With a thematic ETF, you’re following an idea as opposed to a complex strategy.”
Here are six of the best AI ETFs to buy now:
| ETF | Expense ratio |
| Xtrackers Artificial Intelligence and Big Data ETF (XAIX) | 0.35% |
| Roundhill Generative AI & Technology ETF (CHAT) | 0.75% |
| Global X Artificial Intelligence & Technology ETF (AIQ) | 0.68% |
| Global X Robotics & Artificial Intelligence ETF (BOTZ) | 0.68% |
| Invesco AI and Next Gen Software ETF (IGPT) | 0.58% |
| iShares Future AI & Tech ETF (ARTY) | 0.47% |
Xtrackers Artificial Intelligence and Big Data ETF (XAIX)
“Many of the existing funds in the market utilize backward-looking mechanisms to determine if a company should be classified as an AI company,” says Arne Noack, regional investment head of Xtrackers, Americas, at DWS Group. “On the other hand, XAIX’s approach seeks to be forward-looking, as its underlying index screens for approved patents in fields related to AI.”
XAIX tracks the Nasdaq Global Artificial Intelligence and Big Data Index. This benchmark screens companies based on patents filed for machine learning, image and speech recognition, and natural language processing. Top holdings include Apple Inc. (AAPL), Salesforce.com Inc. (CRM) and Meta Platforms Inc. (META). XAIX charges a 0.35% expense ratio, the cheapest on this list.
Roundhill Generative AI & Technology ETF (CHAT)
“CHAT selects stocks using a proprietary methodology that combines a transcript score and sector score to evaluate companies’ relevance to generative AI, factoring in their revenue, profit and R&D investment in AI technologies,” explains Dave Mazza, CEO at Roundhill Investments. “Companies are then scored and selected based on their exposure to AI, market capitalization and liquidity.”
CHAT’s actively managed strategy means that the ETF does not passively track a benchmark index. As a result, the ETF has broader discretion with its investment decisions and portfolio management. Right now, four of the “Magnificent Seven” stocks sit in the ETF’s top 10 holdings — Nvidia, Alphabet Inc. (GOOGL), Microsoft and Meta Platforms. The ETF charges a 0.75% expense ratio.
Global X Artificial Intelligence & Technology ETF (AIQ)
“AIQ offers comprehensive exposure to the entire AI value chain, with exposure that ends up looking quite like the Nasdaq-100 but is more tilted toward technology and mid-cap growth,” Dessai says. The ETF currently has 27% of its holdings overlapping with the Nasdaq-100, sharing 24 common holdings. But unlike the Nasdaq-100, AIQ does not hold companies like Costco Wholesale Corp. (COST) and PepsiCo Inc. (PEP).
Instead, 67% of AIQ is dominated by technology sector stocks, with tech-adjacent consumer discretionary and communication services sectors coming in second and third at 12.7% and 10.2%, respectively. Top holdings currently include Tesla Inc. (TSLA), Broadcom Inc. (AVGO) and Netflix Inc. (NFLX). AIQ is well capitalized, with over $2.6 billion in assets under management (AUM). It charges a 0.68% expense ratio.
[READ: 8 Best Tech Index Funds to Buy Now]
Global X Robotics & Artificial Intelligence ETF (BOTZ)
“We see BOTZ as a more niche play on applied automation,” Dessai says. This ETF tracks the Global Robotics & Artificial Intelligence Thematic Index, which emphasizes hardware over software. Compared to AIQ, BOTZ has a lower 46.8% allocation toward technology stocks. In exchange, it has a higher 32.9% and 15.3% allocation toward industrials and health care, respectively.
Currently, the top holding in BOTZ is Nvidia, at a 13% allocation. The next largest holding is Intuitive Surgical at 10.5%. The other top holdings in BOTZ comprise a mixture of Japanese and Swiss manufacturing companies, making it more globally diversified than AIQ. The ETF also charges a 0.68% expense ratio and currently has just over $2.6 billion in AUM.
Invesco AI and Next Gen Software ETF (IGPT)
“We believe the AI trend will broaden in scope to encompass additional segments of the market, with new technological advancements, a more stable interest rate environment and the ongoing impact of fiscal stimulus broadening innovation across multiple industries,” says Rene Reyna, head of thematic and specialty product ETF strategy at Invesco. For AI exposure, Invesco offers IGPT at a 0.58% expense ratio.
This ETF tracks the Stoxx World AC NexGen Software Development Index. “The index targets 100 companies from across the globe that generate revenue from various forms of software and AI, such as data storage, robotics, autonomous vehicles, semiconductors and web platforms,” Reyna says. Over the trailing 10-year period, IGPT has delivered a strong 14.4% annualized total return.
iShares Future AI & Tech ETF (ARTY)
The iShares lineup currently has 445 U.S.-listed ETFs. While many of these ETFs offer exposure to technology, the dedicated AI thematic ETF among them is ARTY. This ETF tracks the Morningstar Global Artificial Intelligence Select Index, which holds a portfolio of 50 companies involved in generative AI, AI data and infrastructure, AI software, and AI services.
Aside from XAIX, ARTY is also cheaper than the previous AI ETFs, with a 0.47% expense ratio. Don’t rely on past performance to judge this ETF, though. Prior to Aug. 12, ARTY tracked a different benchmark, the NYSE FactSet Global Robotics and Artificial Intelligence Index. This index had a vastly different composition due to its equal-weighting methodology.
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6 of the Best AI ETFs to Buy for 2025 originally appeared on usnews.com
Update 01/03/25: This story was previously published at an earlier date and has been updated with new information.
