Comprehensive Guide to AI-Related ETFs

Explore the Top ETFs Investing in Artificial Intelligence

artificial intelligence technology innovation

Key Takeaways

Diverse Investment Options: AI ETFs range from broad technology funds to specialized generative AI and robotics-focused ETFs, offering various strategies to suit different investment goals.
Critical Factors to Consider: When selecting an AI ETF, it's essential to evaluate expense ratios, assets under management (AUM), underlying holdings, and performance metrics to align with your investment objectives.
Market Leaders: ETFs like Global X Robotics & Artificial Intelligence ETF (BOTZ) and iShares Future AI & Tech ETF (ARTY) are prominent choices, providing robust exposure to cutting-edge AI technologies and companies.

Introduction

As artificial intelligence (AI) continues to revolutionize industries across the globe, investors are increasingly seeking opportunities to capitalize on the growth potential of this transformative technology. Exchange-Traded Funds (ETFs) focused on AI offer a convenient and diversified way to invest in companies at the forefront of AI innovation. This comprehensive guide delves into the various AI-related ETFs available in 2025, highlighting their unique features, key considerations, and performance metrics to help you make informed investment decisions.

Types of AI ETFs

AI-related ETFs can be broadly categorized based on their investment focus and strategy. Understanding these categories is crucial for selecting an ETF that aligns with your investment goals and risk tolerance.

1. Broad Technology ETFs

These ETFs invest in a wide array of technology companies, including those actively involved in AI. While AI forms a part of their portfolio, it is not the sole focus, allowing investors to benefit from the broader technology sector's growth.

2. AI-Focused ETFs

Specifically targeting companies that develop or utilize AI technologies, these ETFs aim to provide concentrated exposure to the AI sector. They may track specialized indexes or employ active management to select high-potential AI companies.

3. Robotics and AI ETFs

Recognizing the synergy between robotics and AI, these ETFs invest in companies engaged in both fields. This dual focus taps into the advancements in automation and intelligent systems, which are pivotal in various industries.

4. Generative AI ETFs

A newer subset of AI ETFs, generative AI funds concentrate on companies involved in creating new content through AI, such as text generation, image creation, and code development. These ETFs reflect the burgeoning interest and rapid advancements in generative AI technologies.

Top AI ETFs in 2025

The AI ETF landscape is populated with numerous funds, each offering unique advantages. Below is a detailed comparison of some of the leading AI-related ETFs available as of January 2025.

ETF Name	Ticker	Assets Under Management (AUM)	Expense Ratio	Focus Area	Performance
Global X Robotics & Artificial Intelligence ETF	BOTZ	$2.59 Billion	0.68%	Robotics and AI Development	Strong YTD Returns
iShares Future AI & Tech ETF	ARTY	$677.4 Million	0.47%	Global AI Innovations	Consistent Growth
First Trust Nasdaq Artificial Intelligence and Robotics ETF	ROBT	$443.1 Million	0.65%	Machine Learning and Automation	Moderate Returns
ARK Autonomous Technology & Robotics ETF	ARKQ	$1.2 Billion	0.75%	Autonomous Technology and Robotics	High Performance
Roundhill Generative AI & Technology ETF	CHAT	$500 Million	0.55%	Generative AI Technologies	57% Return Since Inception
iShares Robotics and Artificial Intelligence ETF	IRBO	$1.5 Billion	0.47%	Hardware and Software AI Companies	Strong Diversification
Global X Artificial Intelligence & Technology ETF	AIQ	$3 Billion	0.68%	AI Across Various Sectors	Robust Performance
YIELDMax AI Option Income ETF	AIYY	$200 Million	0.95%	Income through AI Options Strategies	Speculative Growth

Factors to Consider When Choosing an AI ETF

Selecting the right AI ETF requires careful evaluation of several key factors to ensure alignment with your investment strategy and risk appetite. Here are the primary considerations:

1. Expense Ratio

The expense ratio represents the annual fee charged by the ETF, expressed as a percentage of your investment. Lower expense ratios are generally preferable as they reduce the overall cost and can enhance net returns over time. However, it's essential to balance cost with the ETF's potential for growth and the quality of holdings.

2. Assets Under Management (AUM)

A higher AUM often indicates a more established and liquid ETF, which can translate to tighter bid-ask spreads and greater ease of trading. ETFs with substantial AUM tend to have more stable operations and can better withstand market fluctuations.

3. Underlying Holdings

An ETF's holdings provide insight into its focus and potential performance drivers. Assessing the concentration of sectors, geographic distribution, and the dominance of particular companies can help gauge the ETF's exposure to various facets of the AI industry.

4. Performance Metrics

Historical performance offers a glimpse into how the ETF has fared in different market conditions. While past performance is not indicative of future results, consistent returns and resilience during downturns can be positive indicators of an ETF's management and strategy.

5. Investment Strategy

Understanding whether the ETF is actively managed or passively tracking an index is crucial. Actively managed ETFs may offer the potential for superior returns through strategic stock selection, whereas passive ETFs typically provide broader market exposure with lower fees.

6. Dividend Yield

For investors seeking income, dividend yield is an important metric. Some AI ETFs offer dividend payouts, which can contribute to overall returns. However, higher yields should be weighed against the sustainability and growth potential of the dividends.

Performance and Trends in AI ETFs

The AI sector has shown significant growth and resilience, driven by advancements in machine learning, natural language processing, and autonomous systems. AI ETFs have capitalized on this trend, delivering robust performance metrics that attract a diverse range of investors.

Notably, the Roundhill Generative AI & Technology ETF (CHAT) has outperformed the S&P 500 since its inception in May 2023, boasting a remarkable 57% return. This ETF's focus on generative AI technologies aligns with the surge in content creation and innovation within the AI landscape.

Established ETFs like the Global X Robotics & Artificial Intelligence ETF (BOTZ) and the iShares Future AI & Tech ETF (ARTY) have demonstrated consistent growth, benefiting from their diversified holdings and strategic investment in leading AI and robotics companies. The ARK Autonomous Technology & Robotics ETF (ARKQ), known for its active management, continues to be one of the best-performing AI ETFs, driven by its investments in autonomous technologies and robotics innovations.

The integration of AI in various sectors, including healthcare, industrial automation, and consumer goods, has broadened the investment horizon for AI ETFs. This diversification not only mitigates sector-specific risks but also taps into multiple growth avenues fueled by AI advancements.

Conclusion

Investing in AI-related ETFs presents a strategic opportunity to gain exposure to one of the most transformative and rapidly evolving sectors in the global economy. By offering diversified holdings, these ETFs enable investors to participate in the growth of cutting-edge technologies without the need to select individual stocks. When choosing an AI ETF, it's imperative to consider factors such as expense ratios, AUM, underlying holdings, and performance metrics to ensure alignment with your investment objectives and risk tolerance.

The market for AI ETFs is expanding, with a range of options catering to different investment strategies—from broad technology exposure to specialized focuses like generative AI and robotics. As AI continues to disrupt and redefine industries, the potential for growth within AI ETFs remains substantial. However, as with any investment, due diligence and careful analysis are essential to navigate the complexities and harness the opportunities presented by the AI revolution.