Rotation among the largest U.S. technology stocks continues to define the race for artificial intelligence leadership, underscoring how quickly market perceptions can shift in this space.
In early January, Alphabet Inc. (ticker: GOOG, GOOGL) briefly joined the $4 trillion market capitalization club, placing it alongside other “Magnificent Seven” companies such as Nvidia Corp. (NVDA), Apple Inc. (AAPL) and Microsoft Corp. (MSFT).
That milestone would have seemed unlikely two years earlier, when Alphabet’s early AI efforts faced public criticism and competitors appeared to be pulling ahead.
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In early 2024, investor attention was focused on Microsoft’s partnership with OpenAI and Amazon’s backing of Anthropic, while Alphabet’s initial rollout of its Gemini large language model drew negative headlines over accuracy and bias issues.
But from March 2024 through the end of 2025, Alphabet’s stock more than doubled, aided by a series of developments that reshaped investor sentiment.
These included renewed confidence following the release of improved versions of Gemini, progress in custom tensor processing units designed for large-scale AI workloads in data centers, and a cooling of antitrust concerns that had previously weighed on the stock.
The disclosure of a multibillion-dollar position by Berkshire Hathaway Inc. (BRK.A, BRK.B) also reinforced the view that Alphabet’s long-term fundamentals remained intact despite earlier product missteps.
What previous critics overlooked was the company’s wide-moat ecosystem, built around products such as Google Search, YouTube, Chrome, Android and its cloud platform, that benefits from deep user lock-in and multiple monetization channels.
Alphabet’s turnaround illustrates a broader reality of AI investing: Early setbacks do not always determine long-term winners. For investors, the challenge lies in gaining exposure to these shifts without relying on precise timing or single-stock bets in a highly competitive industry.
One way to address that risk is through AI exchange-traded funds (ETFs). While individual firms may stumble or surge, diversified exposure allows investors to participate in the sector’s growth while reducing reliance on any one name.
“We believe it is critical to approach investing in generative AI companies with an actively managed approach,” says Thomas DiFazio, ETF strategist at Roundhill Investments. “The AI landscape is rapidly evolving, and it is crucial to be nimble.”
Here are six of the best AI ETFs to consider for 2026:
| ETF | Expense ratio |
| Global X Artificial Intelligence & Technology ETF (AIQ) | 0.68% |
| Global X Robotics & Artificial Intelligence ETF (BOTZ) | 0.68% |
| Pacer Data & Infrastructure Real Estate ETF (SRVR) | 0.49% |
| Roundhill Generative AI & Technology ETF (CHAT) | 0.75% |
| iShares AI Innovation and Tech Active ETF (BAI) | 0.55% |
| Xtrackers Artificial Intelligence and Big Data ETF (XAIX) | 0.35% |
Global X Artificial Intelligence & Technology ETF (AIQ)
“We’re still 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.” This is reflected in Global X’s lineup of four AI-themed ETFs.
While Global X offers more specialized AI-focused ETFs targeting areas such as semiconductors, quantum computing, and data centers and digital infrastructure, AIQ serves as its “buy it all” option for broad AI exposure. The ETF has managed to capture gains from Alphabet, which is AIQ’s second-largest holding, at about 4.5%. AIQ charges a 0.68% expense ratio and has over $7.9 billion in assets.
Global X Robotics & Artificial Intelligence ETF (BOTZ)
“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 says. “AI could follow the same trajectory, embedding itself into the physical world, from factories and drones to delivery vans and buildings.” That applied automation theme is the core focus of BOTZ.
Compared with AIQ, BOTZ places less emphasis on pure software firms and more weight on industrial and health care applications of AI, including robotics, automation and precision equipment. That approach results in a higher allocation to Japanese equities, reflecting the country’s leadership in robotics manufacturing and industrial automation technologies. The ETF charges a 0.68% expense ratio.
Pacer Data & Infrastructure Real Estate ETF (SRVR)
AI ETFs allow investors to express different levels of specificity within the theme. Generalist ETFs such as AIQ are often used to capture the overall growth of the AI industry, while more focused ETFs like BOTZ narrow in on AI applications in industry. Another way to position for AI adoption is to invest in the physical infrastructure that supports it, particularly the data centers where workloads are run.
That approach shifts the focus away from software and algorithms toward the real estate investment trusts that physically house servers. SRVR provides that exposure via the Solactive GPR Data & Infrastructure Real Estate Index. To be included, companies must derive at least 85% of earnings or revenues from global data and technology infrastructure, or at least 50% from power generation.
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Roundhill Generative AI & Technology ETF (CHAT)
“CHAT actively 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.”
Despite facing headwinds from a higher 0.75% expense ratio, CHAT’s relatively concentrated portfolio of 49 stocks has delivered material outperformance over comparable index benchmarks. Over a roughly 2.7-year period from May 18, 2023, to Jan. 22, 2026, CHAT delivered a 146% cumulative return, while the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 index, “only” returned 87%.
iShares AI Innovation and Tech Active ETF (BAI)
CHAT is not the only actively managed AI ETF on the market, and investors who prefer active strategies may consider diversifying across managers to mitigate style drift. This risk occurs when a portfolio gradually deviates from its stated mandate over time, often as managers adjust holdings in response to market conditions, valuation pressures or shifting narratives, which can lead to unintended exposures.
A prominent alternative is BAI, which charges a 0.55% net expense ratio. The ETF is managed by Tony Kim and Reid Menge, both of whom hold leadership roles in BlackRock’s Fundamental Equities Global Technology Team. BAI currently runs a relatively concentrated portfolio of about 43 stocks, with Nvidia as its largest holding at roughly 8.2% and Alphabet ranking third at about 4.7%.
Xtrackers Artificial Intelligence and Big Data ETF (XAIX)
Actively managed AI ETFs can outperform when their research and stock selection are right, but the opposite can also occur, and high expense ratios apply regardless of performance. For investors who want to avoid that cost drag, a passive index-tracking option like XAIX offers a lower-cost alternative with a 0.35% expense ratio. But while XAIX is passively managed, its benchmark is relatively sophisticated.
The ETF tracks the Nasdaq Global Artificial Intelligence and Big Data Index, which screens 1,700 companies worldwide. The main feature of this index is a “patent engagement score.” This operates on the premise that sustained patent filings are a forward-looking signal of investment in research and development, which has historically supported above-average revenue growth and stock performance.
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6 of the Best AI ETFs to Buy for 2026 originally appeared on usnews.com
Update 01/23/26: This story was published at an earlier date and has been updated with new information.
