After wagering billions on the metaverse, Meta Platforms Inc. (ticker: META) has now pivoted to make artificial intelligence (AI) its primary strategic focus.
The $1.5 trillion tech giant’s first-quarter 2025 earnings included a forecast for full-year capital expenditures between $64 billion and $72 billion, up from earlier guidance of $60 billion to $65 billion.
Meta disclosed the increase is largely earmarked for data center investments as it races to become a global leader in AI, competing with similar initiatives from Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN) and Alphabet Inc. (GOOG, GOOGL).
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Shares of Meta have mostly recovered from the volatility sparked by recent Trump administration tariffs, up 2% year to date as of May 7. But whether CEO Mark Zuckerberg’s aggressive AI infrastructure bet will pay off over the long term remains to be seen.
“Broadly speaking, capital expenditures for AI remain high, however, investors are increasingly scrutinizing the return on investment for these expenditures,” says Arne Noack, regional investment head of Xtrackers, Americas, at DWS Group. “In other words, it will be important to see how adoption of AI will accelerate growth, increase productivity or reduce costs across the economic value chain.”
Instead of betting solely on Meta’s success in a hyper-competitive, highly regulated industry, investors may want to cast a wider net through a dedicated AI-focused exchange-traded fund (ETF).
“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% |
| Invesco AI and Next Gen Software ETF (IGPT) | 0.58% |
| Global X Artificial Intelligence & Technology ETF (AIQ) | 0.68% |
| Global X Robotics & Artificial Intelligence ETF (BOTZ) | 0.68% |
| Global X Data Center & Digital Infrastructure ETF (DTCR) | 0.50% |
| Roundhill Generative AI & Technology ETF (CHAT) | 0.75% |
Xtrackers Artificial Intelligence and Big Data ETF (XAIX)
“With cost reduction and commoditization of large language models, AI users and investors may choose to shift their focus to applications and use cases like software,” Noack explains. “We believe the theme remains relevant and that a diversified portfolio, focusing on companies with strong patent activity, may be an interesting approach.” For AI exposure, Xtrackers offers XAIX at a competitive 0.35% expense ratio.
“Many of the existing funds in the market utilize backward-looking mechanisms to determine if a company should be classified as an AI company,” Noack explains. “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.” The ETF is also fairly tax efficient thanks to a low 0.8% 30-day SEC yield.
Invesco AI and Next Gen Software ETF (IGPT)
“We believe AI remains a compelling long-term growth theme in the U.S., driven by innovation and rising enterprise adoption,” says Rene Reyna, head of thematic and specialty product ETF strategy at Invesco. “However, near-term sentiment is being weighed down by renewed tariff pressures, creating uncertainty for investors in the space.” Invesco’s offering in this thematic segment is IGPT at a 0.58% expense ratio.
IGPT tracks the Stoxx World AC NexGen Software Development Index. “IGPT targets about 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. This ETF is even more tax efficient than XAIX thanks to a low 0.4% 30-day SEC yield.
Global X Artificial Intelligence & Technology ETF (AIQ)
“AI’s disruption of our economy accelerated overnight, so a persistent sell-off could be an opportunity for investors who have stayed on the sidelines,” Dessai says. Certain AI-related companies, such as chipmaker Advanced Micro Devices Inc. (AMD), are still down heavily year-to-date. However, investors who want to diversify beyond single names like AMD may prefer AI ETFs like AIQ instead.
This ETF holds just short of $3 billion in assets under management (AUM), making it one of the largest thematic funds in the AI segment. It tracks 85 holdings represented by the Indxx Artificial Intelligence & Big Data Index, which is globally diversified. Investors can expect good tax efficiency thanks to a 0.2% 30-day SEC yield, but liquidity isn’t the best due to a wider 0.2% 30-day median bid-ask spread.
[Read: 6 Top Small-Cap AI Stocks and Emerging AI Companies]
Global X Robotics & Artificial Intelligence ETF (BOTZ)
“We see BOTZ as a more niche play on applied automation,” Dessai says. This ETF passively tracks 50 holdings represented by the Indxx Global Robotics & Artificial Intelligence Thematic Index. Compared to AIQ, BOTZ focuses less on the software companies developing AI applications. Instead, the ETF emphasizes companies deploying AI solutions in industrial and health care applications.
“When you think about smartphones, laptops or even mobile applications, lower prices and cheaper development costs didn’t shrink the market but expanded it as innovation accelerated,” Dessai explains. “AI could follow the same trajectory, embedding itself into the physical world — from factories and drones to delivery vans and buildings.” BOTZ charges a 0.68% expense ratio.
Global X Data Center & Digital Infrastructure ETF (DTCR)
Some of the greatest investments during the gold rush didn’t come from mining gold, but from selling the tools and infrastructure needed to do so. For a similar approach to AI, consider DTCR. This thematic ETF tracks the Solactive Data Center REITs & Digital Infrastructure Index with a 0.5% expense ratio and currently pays a higher-than-average 2.1% 30-day SEC yield due to its real estate holdings.
DTCR’s portfolio includes major data center players like Equinix Inc. (EQIX), Digital Realty Trust Inc. (DLR) and Crown Castle Inc. (CCI), in addition to more traditional telecom REITs like American Tower Corp. (AMT). DTCR can be a smart complement to more AI-centric ETFs like AIQ or BOTZ, offering exposure to the physical backbone of the AI boom without significant portfolio overlap with either.
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.”
This actively managed ETF does not track an index. It currently features a concentrated portfolio of 36 companies, with multiple “Magnificent Seven” stocks in the top holdings along with high-growth names like Palantir Technologies Inc. (PLTR) and Broadcom Inc. (AVGO). Investors seeking enhanced exposure can also trade options on CHAT. However, the ETF is pricier, with a 0.75% expense ratio.
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6 of the Best AI ETFs to Buy for 2025 originally appeared on usnews.com
Update 05/08/25: This story was previously published at an earlier date and has been updated with new information.
