Artificial intelligence has rapidly shifted from theoretical research to real-world deployment across healthcare, finance, logistics, and consumer technology. Every breakthrough in generative AI, industrial robotics, or machine learning is powered by a vast AI value chain of companies spanning semiconductors, data centers, and cloud platforms.
For investors, the challenge is no longer about believing in AI’s future but deciding how to gain portfolio exposure to this growth while managing risks such as product obsolescence, regulatory scrutiny, and market volatility. Instead of relying on a single stock like Tesla Motors, Palantir Technologies, or chip designer NVIDIA, many are turning to AI ETFs as part of their investment strategy.
These ETFs combine AI leaders, infrastructure providers, and emerging innovators into one basket. By doing so, they allow investors to participate in the total return potential of AI while mitigating single-stock risks. Whether your investment objective is growth, diversification, or capturing the next wave of AI services, the ETF universe now offers multiple choices aligned with different risk tolerance levels.
In this guide, we will break down the 10 best AI ETFs, explain their strategies, list their expense ratios, and explore where each fits in a diversified portfolio. We will also highlight their core holdings, examine the role they play in the AI value chain, and outline what type of investor each ETF may suit best.
What is an ETF?
An Exchange-Traded Fund (ETF) is a type of investment vehicle that combines the diversification of mutual funds with the liquidity of stocks. Instead of buying shares in a single company, investors gain exposure to a basket of securities that represent a specific theme, index, or sector.
Key characteristics of ETFs:
- Diversification: Provides exposure to dozens or even hundreds of companies in one trade.
- Liquidity: Trades on major exchanges throughout the day like an individual stock.
- Transparency: Holdings are typically disclosed daily, so investors know what they own.
- Cost efficiency: Expense ratios are often lower than actively managed mutual funds.
- Flexibility: Can target themes (such as AI, robotics, or cloud computing), geographies, or entire indices.
For example, an AI-focused ETF might hold Nvidia, Amazon, Microsoft, and Taiwan Semiconductor, giving investors access to the entire AI value chain (from semiconductors and cloud service providers to software development and data infrastructure). This makes ETFs an attractive tool for investors seeking exposure to complex growth themes like artificial intelligence without the need to pick individual winners.
What Makes AI ETFs Unique?
AI ETFs stand out because they offer broad exposure to the entire AI value chain rather than forcing investors to bet on a single winner. Instead of concentrating on one application or technology, they allocate across companies that build the infrastructure, develop the tools, and apply AI in real-world industries. This structure makes them both growth-oriented and resilient.
Here’s how they are typically built:
- Semiconductors – The brains of AI, from GPUs to custom accelerator chips. Leaders like Nvidia (NVDA), Advanced Micro Devices (AMD), and Taiwan Semiconductor (TSM) are critical for training neural networks, powering high-performance computing, and enabling edge computing.
- Data Centers – Purpose-built facilities that serve as the backbone of AI data and infrastructure, hosting hyperscale compute clusters and AI model training platforms. Equinix (EQIX) and Digital Realty (DLR) are key players.
- Cloud Platforms – Providers such as Microsoft Azure (MSFT), Amazon Web Services (AMZN), and Google Cloud (GOOGL) deliver the scalable computing resources needed for generative AI applications and enterprise adoption.
- Networking Equipment – High-speed switches and interconnects that move enormous amounts of data efficiently between servers in hyperscale data centers. Arista Networks (ANET) and Cisco (CSCO) dominate this space.
- Power and Cooling Systems – Specialized data center equipment that manages energy demand and thermal loads of GPU-accelerated workloads. Vertiv (VRT) and Schneider Electric (SBGSY) are examples.
AI ETFs also include exposure to application-focused companies, giving them a growth layer beyond infrastructure:
- AI Software & Analytics – Palantir Technologies (PLTR) and C3.ai (AI) provide enterprise AI tools for defense, security, and data workflows.
- Consumer & Automotive AI – Tesla Motors (TSLA) is often included for its advancements in autonomous driving and robotics.
- Big Data & Cloud-Native AI – Snowflake (SNOW) and ServiceNow (NOW) leverage AI to transform enterprise data management and workflow automation.
- Global AI Leaders – Non-U.S. companies such as Alibaba Group (BABA) and Tencent Holdings (TCEHY) are scaling AI services, cloud platforms, and generative AI applications.
By combining infrastructure providers with application innovators, AI ETFs give investors diversified exposure to the full AI ecosystem. This dual approach reduces the risk of relying on a single segment while maximizing participation in long-term trends like digital transformation, automation, and data-driven growth.
Top 11 AI ETFs to Watch
Below are the most relevant ETFs for investors navigating the AI stocks universe in 2025.
1. Global X Robotics & Artificial Intelligence ETF (BOTZ)
BOTZ focuses on robotics, automation tools, and AI adoption across industries. It provides a mix of hardware and AI application companies.
- Expense Ratio: 0.68%
- Top Holdings: NVIDIA (NVDA), Intuitive Surgical (ISRG), Keyence (6861.T), ABB (ABB)
- Investment Thesis: BOTZ balances established AI companies with industrial robotics leaders. For investors seeking broad AI exposure with an automation tilt, BOTZ is a flagship ETF.
- Net Assets: $2.837B
2. ARK Autonomous Technology & Robotics ETF (ARKQ)
Managed by Cathie Wood’s ARK Invest, ARKQ is a high-conviction, high-volatility ETF focused on transformational innovation.
- Expense Ratio: 0.75%
- Top Holdings: Tesla (TSLA), Kratos Defense & Security Solutions (KTOS ), Trimble (TRMB), Kratos Defense (KTOS)
- Investment Thesis: ARKQ is best suited for investors with high risk tolerance who want concentrated exposure to autonomous driving, industrial robotics, and space technologies.
- Net Assets: $1.252B
3. iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)
IRBO is equal-weighted, giving smaller AI stocks as much presence as megacaps.
- Expense Ratio: 0.47%
- Top Holdings: Lumen Technologies (LUMN), Micron Technology (MU), Advanced Micro Devices (AMD), Meta Platforms (META), Palantir Technologies (PLTR)
- Investment Thesis: By diversifying across both U.S. and non-U.S. companies, IRBO avoids overconcentration in the top 5 names. This makes it attractive for investors focused on global AI companies.
- Net Assets: $572.0M
4. WisdomTree Artificial Intelligence and Innovation Fund (WTAI)
WTAI is a blend of infrastructure and AI applications.
- Expense Ratio: 0.45%
- Top Holdings: Palantir (PLTR), NVIDIA (NVDA), Broadcom (AVGO), TSMC (TSM), Snowflake (SNOW), ServiceNow (NOW)
- Investment Thesis: This ETF fits investors who want both the growth of AI tools and software development and the resilience of semiconductor leaders.
- Net Assets: $234.4M
5. ROBO Global Robotics & Automation Index ETF (ROBO)
ROBO invests in automation and manufacturing AI, with global diversification.
- Expense Ratio: 0.95%
- Top Holdings: Fanuc (6954.T), Teradyne (TER), Symbotic (SYM), Autodesk (ADSK)
- Investment Thesis: For those seeking exposure beyond Silicon Valley, ROBO is a gateway to industrial robotics and AI adoption in manufacturing.
- Net Assets: $1.08B
6. VanEck Semiconductor ETF (SMH)
SMH offers pure exposure to the AI chip market.
- Expense Ratio: 0.35%
- Top Holdings: NVIDIA (NVDA), Advanced Micro Devices (AMD), Taiwan Semiconductor (TSM), ASML (ASML)
- Investment Thesis: If you believe semiconductors are the core growth layer of AI, SMH provides direct exposure to the companies designing and fabricating the chips.
- Net Assets: $27.8B
7. Global X Data Center & Digital Infrastructure ETF (DTCR)
DTCR focuses on data centers, digital infrastructure, and cell towers that form the backbone of AI and cloud adoption.
- Expense Ratio: 0.50%
- Top Holdings: Equinix (EQIX), American Tower (AMT), Digital Realty (DLR), Crown Castle (CCI)
- Investment Thesis: DTCR is ideal for investors seeking real-asset-backed exposure to the physical infrastructure powering AI, 5G, and cloud services.
- Net Assets: $368.3M
8. First Trust Cloud Computing ETF (SKYY)
SKYY invests in cloud platforms and cloud computing leaders.
- Expense Ratio: 0.60%
- Top Holdings: Arista Network (ANET), Amazon (AMZN), Alphabet (GOOGL), Oracle (ORCL), Salesforce (CRM)
- Investment Thesis: SKYY gives investors exposure to the AI operating system layer, where cloud providers monetize AI services at scale.
- Net Assets: $2.877B
9. iShares US Telecommunications ETF (IYZ)
IYZ leans toward networking equipment and telecoms.
- Expense Ratio: 0.39%
- Top Holdings: Cisco (CSCO), Arista Networks (ANET), Verizon (VZ), AT&T (T)
- Investment Thesis: As AI adoption accelerates, the demand for networking switches and data movement is surging. IYZ captures this critical, underappreciated enabler.
- Net Assets: $588.4M
10. Global X Artificial Intelligence & Technology ETF (AIQ)
AIQ invests in companies developing and adopting artificial intelligence across industries, from semiconductors to software platforms.
- Expense Ratio: 0.68%
- Top Holdings: NVIDIA (NVDA), Microsoft (MSFT), Alphabet (GOOGL), Meta Platforms (META), Tesla (TSLA)
- Investment Thesis: AIQ offers broad exposure to the AI value chain, blending hardware leaders with software developers and end users integrating AI into their business models.
- Net Assets: $4.486B
11. iShares Exponential Technologies ETF (XT)
XT targets companies positioned for long-term growth through innovation in AI, robotics, big data, and other transformative technologies.
- Expense Ratio: 0.47%
- Top Holdings: NVIDIA (NVDA), Salesforce (CRM), ServiceNow (NOW), Intuitive Surgical (ISRG), ASML (ASML)
- Investment Thesis: XT is designed for investors who want diversified exposure not only to AI companies but also to adjacent areas like industrial robotics, automation, and software development, making it a broad innovation play.
- Net Assets: $3.446 billion
How to Approach AI ETFs in Your Portfolio
AI ETFs are not one-size-fits-all. Investors should consider:
- Risk Tolerance: Growth-focused ETFs like ARKQ are more volatile, while infrastructure ETFs like VPN and VRTI offer steadier, asset-backed returns.
- Portfolio Strategy: A balanced portfolio could combine SMH (chips), SKYY (cloud), and BOTZ (AI applications).
- Valuation vs. Durability: Some AI companies trade at premium valuations. But in capital-intensive industries with high switching costs, those premiums often reflect structural leadership and recurring demand.
- Time Horizon: AI is a multi-decade growth theme. Holding periods of 5–10 years allow investors to ride out volatility while benefiting from compounding.
Key Takeaways for Investors
- AI ETFs provide exposure to the full AI value chain, from semiconductors to cloud services.
- Expense ratios range from 0.35% to 0.95%, with lower-cost ETFs often tied to infrastructure plays.
- Investors can tailor ETF selection to their objectives, whether it’s capturing generative AI growth, industrial robotics, or the resilience of data centers.
- Long-term compounding in AI requires patience, discipline, and an eye for structural durability.
