Top AI ETFs to Consider for Your Investment Portfolio
The surge in artificial intelligence (AI) technology is undeniably influencing today’s stock market, particularly among major companies. However, selecting individual AI stocks can often feel overwhelming.
If you’re eager to include AI in your investments but unsure of the best stocks, consider looking into exchange-traded funds (ETFs). Below are five notable AI-focused ETFs worth examining.
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Five Prominent AI ETFs to Buy Now
|
Fund Name (Symbol) |
Total Assets |
Expense Ratio |
|---|---|---|
|
Invesco QQQ ETF (NASDAQ: QQQ) |
$326.6 billion |
0.20% |
|
iShares Future AI & Tech ETF (NYSEMKT: ARTY) |
$756 million |
0.47% |
|
Invesco AI and Next Gen Software ETF (NYSEMKT: IGPT) |
$428 million |
0.58% |
|
GlobalX Artificial Intelligence & Technology ETF (NASDAQ: AIQ) |
$2.71 billion |
0.68% |
|
ARK Autonomous Technology & Robotics ETF (NYSEMKT: ARKQ) |
$947.7 million |
0.75% |
Data source: Fund websites. Data accessed on Jan. 7, 2025.
Invesco QQQ ETF
Though not specifically an AI ETF, the Invesco QQQ ETF tracks the Nasdaq-100 index and provides significant exposure to top AI companies. Its expense ratio of 0.20% is lower compared to other funds. Notably, the top 10 holdings comprise 53% of total assets, including major players like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Microsoft (NASDAQ: MSFT), along with emerging companies like Palantir (NASDAQ: PLTR) and CrowdStrike (NASDAQ: CRWD).
This lesser-known fund focuses on AI, boasting a relatively low expense ratio. The ETF tracks an index of 50 stocks, including top holdings like Broadcom (NASDAQ: AVGO), Arista Networks (NYSE: ANET), and Nvidia.
Invesco AI and Next Gen Software ETF
One of the first AI ETFs launched nearly 20 years ago, this fund has generated impressive annualized total returns of 12.7%, surpassing the S&P 500. It features prominent stocks like Nvidia, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), and Meta Platforms (NASDAQ: META).
GlobalX Artificial Intelligence & Technology ETF
This sizable AI ETF includes 84 stocks. Interestingly, its largest holdings don’t include some typical AI names. Rather, the top stocks are Tesla (NASDAQ: TSLA), Broadcom, and ServiceNow (NYSE: NOW), each contributing between 3.2% and 4.5% of the fund’s assets.
ARK Autonomous Technology & Robotics ETF
The only actively managed ETF on this list, the ARK fund seeks to outshine its benchmark with a portfolio constructed by its managers. Typically, it holds between 30 to 50 stocks. Alongside its top holding of Tesla, other major stocks include Teradyne (NASDAQ: TER) and Kratos Defense & Security (NASDAQ: KTOS).
Which ETF Fits Your Needs?
These five AI ETFs offer solid options for enhancing your investment exposure to artificial intelligence. The best choice for you hinges on several factors, such as your tolerance for volatility and your investment goals, whether to outperform the market or simply capitalize on the AI trend.
A Second Chance for a Profitable Investment
Do you ever feel like you missed out on lucrative stocks? If so, consider the following.
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We currently have “Double Down” alerts for three outstanding companies, and opportunities like this may not appear again soon.
See 3 “Double Down” stocks »
*Stock Advisor returns as of January 6, 2025
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook, and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is on The Motley Fool’s board as well. Matt Frankel doesn’t hold any position in the stocks mentioned. The Motley Fool has vested interests in and endorses Alphabet, Apple, Arista Networks, CrowdStrike, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, ServiceNow, and Tesla. Additionally, the Motley Fool recommends Broadcom and Teradyne, and offers options advice involving Microsoft. The Motley Fool maintains a disclosure policy.
The views expressed belong solely to the author and do not necessarily represent those of Nasdaq, Inc.
