Artificial intelligence is no longer limited to a small group of technology companies. AI is influencing semiconductors, cloud computing, cybersecurity, data centres, automation, robotics, enterprise software, healthcare, and digital infrastructure.
For investors, this creates an important question: instead of trying to choose one winning AI stock, is it better to invest through an AI ETF?
An artificial intelligence ETF can provide exposure to a basket of companies involved in the AI ecosystem. Depending on the fund, that may include chipmakers, software firms, cloud providers, robotics companies, data-centre operators, and companies using AI to improve their products and services.
This guide explains what AI ETFs are, how they work, the 10 best AI ETFs to watch in 2026, and the key risks to consider before investing.
Important: This article is for educational purposes only and is not financial advice. AI-focused ETFs can be volatile, and past performance does not guarantee future returns.
What Are AI ETFs?
AI ETFs are exchange-traded funds that invest in companies connected to artificial intelligence.
Rather than purchasing one individual AI stock, an investor can buy shares in an ETF that holds dozens of companies across the artificial intelligence value chain.
The exact holdings depend on the fund. Some AI ETFs focus on large technology companies. Others invest in robotics stocks, automation, semiconductor stocks manufacturing, generative AI, cloud infrastructure, or data analytics.
For example, an AI ETF may hold companies involved in:
- AI chips and semiconductors
- Data centres and cloud computing
- Enterprise software
- Machine learning platforms
- Robotics and industrial automation
- Cybersecurity
- Digital infrastructure
- AI-driven healthcare technology
- Generative AI applications
- Data storage and networking
This variety is one reason AI ETFs can be useful for investors who want exposure to artificial intelligence without depending on one company.
Why AI ETFs Are Popular Right Now
The AI investment theme has expanded beyond chatbots and software applications.
The current AI market is increasingly focused on the full AI ecosystem. This includes the companies that build advanced chips, operate cloud platforms, provide networking equipment, develop AI models, supply data-centre infrastructure, and create software that businesses use every day. Blue-chip stocks are also one of the safest investment.
In simple terms, AI growth has several layers:
- Hardware: Chips, processors, memory, networking equipment, and servers.
- Infrastructure: Data centres, cloud computing, storage, and power systems.
- Platforms: AI models, cloud services, cybersecurity tools, and development software.
- Applications: Enterprise software, automation, robotics, healthcare, financial technology, and consumer AI products.
This is why the best AI ETF for one investor may not be the best for another.
Someone who wants broad AI exposure may prefer a diversified technology ETF. Another investor may want a robotics ETF. A more aggressive investor may prefer a fund focused on generative AI or AI semiconductors. AI is also reshaping digital security, making cybersecurity an important related theme for investors to watch. Explore our guide to the top cybersecurity stocks to learn more.
10 Best AI ETFs to Watch in 2026
The following funds are not ranked by expected returns. Instead, they represent different ways to gain AI exposure, depending on your investment goals, risk tolerance, time horizon, and preferred area of the AI market.
| ETF | Ticker | Main Focus | Best For |
|---|---|---|---|
| 1. Global X Artificial Intelligence & Technology ETF | AIQ | Broad global AI and technology exposure | Investors seeking broad AI coverage |
| 2. iShares Future AI & Tech ETF | ARTY | AI ecosystem, infrastructure, and applications | Investors wanting diversified AI exposure |
| 3. WisdomTree Artificial Intelligence & Innovation Fund | WTAI | AI and innovation companies | Cost-conscious thematic investors |
| 4. ROBO Global Artificial Intelligence ETF | THNQ | AI technology and enabling infrastructure | Focused AI exposure |
| 5. Global X Robotics & Artificial Intelligence ETF | BOTZ | Robotics, automation, and AI | Investors interested in applied AI |
| 6. iShares Robotics and Artificial Intelligence Multisector ETF | IRBO | Broad robotics and AI exposure | Diversification across industries |
| 7. First Trust Nasdaq AI and Robotics ETF | ROBT | AI, automation, and robotics | Global AI and robotics exposure |
| 8. iShares A.I. Innovation and Tech Active ETF | BAI | Actively managed AI and technology stocks | Investors comfortable with active management |
| 9. Roundhill Generative AI & Technology ETF | CHAT | Generative AI and related technology | Higher-risk AI growth exposure |
| 10. Global X AI Semiconductor & Quantum ETF | CHPX | AI chips, semiconductors, and quantum technology | Investors focused on AI infrastructure |
1. Global X Artificial Intelligence & Technology ETF (AIQ)
AIQ is one of the better-known AI-themed ETFs. It provides exposure to companies expected to benefit from the development and use of artificial intelligence and big data.
The fund includes companies connected to AI software, cloud computing, data analytics, semiconductors, and digital infrastructure.
AIQ can be a practical choice for investors who want broad exposure to the AI theme without focusing only on robotics or only on chip companies.
Why investors watch AIQ
- Broad AI and technology exposure
- Global holdings rather than only US companies
- Exposure to both AI users and AI infrastructure companies
- Suitable for investors who want one core AI-themed ETF
Main risk
AIQ may still have meaningful exposure to large technology companies. Investors should check the current holdings because broad AI ETFs can overlap with popular mega-cap technology stocks.
2. iShares Future AI & Tech ETF (ARTY)
ARTY provides exposure to companies involved in the AI value chain, including AI infrastructure, software, and technology applications.
This fund may suit investors who want exposure beyond only semiconductor stocks. It offers a way to invest in the companies building, enabling, and applying AI technology across several sectors.
Why investors watch ARTY
- Exposure to different parts of the AI ecosystem
- Includes infrastructure stocks and application-focused companies
- Can help reduce reliance on one narrow AI segment
- Suitable for investors looking for broad AI diversification
Main risk
Even diversified AI ETFs can perform like technology funds during market stress. If technology valuations fall, ARTY may also experience sharp price movements.
3. WisdomTree Artificial Intelligence & Innovation Fund (WTAI)
WTAI focuses on companies involved in artificial intelligence and innovation.
It may appeal to investors looking for AI exposure with a relatively competitive fee compared with some thematic funds. The fund is designed to provide access to companies that are meaningfully connected to AI and innovation rather than simply including every large technology company.
Why investors watch WTAI
- AI and innovation focus
- Competitive cost structure for a thematic ETF
- Exposure across multiple industries
- dnwUseful for long-term investors who want AI as part of a wider portfolio. Get to know the best long term stocks.
Main risk
Thematic ETFs can remain out of favour for long periods. Even when AI adoption is growing, the market may already have priced in high expectations.
4. ROBO Global Artificial Intelligence ETF (THNQ)
THNQ focuses on companies involved in AI technology and the infrastructure needed to support it.
It aims to provide targeted exposure to businesses that develop AI systems, supply AI infrastructure, or help companies use AI more effectively.
This makes THNQ useful for investors who want a more concentrated AI ETF rather than a broad technology fund.
Why investors watch THNQ
- Focused exposure to the AI theme
- Includes AI enablers and infrastructure companies
- May offer more direct AI exposure than broad technology ETFs
- Suitable for investors who already own a general technology ETF
Main risk
A more targeted ETF can be more volatile. It may outperform during a strong AI rally but can also underperform when investors rotate away from growth stocks.
For a broader look at diversified stock-market exposure, read our guide to equity ETFs and how they can fit into a balanced investment portfolio.
5. Global X Robotics & Artificial Intelligence ETF (BOTZ)
BOTZ invests in companies involved in robotics and artificial intelligence.
Its focus is more practical and industrial than some software-heavy AI funds. The ETF may include companies working in robotics, automation, industrial equipment, healthcare stocks, technology, and AI-enabled manufacturing.
Why investors watch BOTZ
- Exposure to robotics and automation
- Useful for investors interested in applied AI
- Can benefit from long-term automation trends
- May include companies beyond traditional software stocks
Main risk
Robotics and industrial automation can be sensitive to global economic conditions. During a slowdown, companies tied to manufacturing, capital spending, and industrial demand may face pressure. AI growth also supports demand for automation, manufacturing technology, and advanced infrastructure. Explore our guide to the best industrial stocks to discover companies positioned to benefit from these broader trends.
6. iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)
IRBO offers exposure to robotics and AI companies across multiple sectors and countries.
This can be useful for investors who want a wider mix of companies rather than a portfolio dominated by a small number of large technology names.
The fund may include companies involved in automation, robotics, AI software, industrial systems, and healthcare technology.
Why investors watch IRBO
- Broad, multi-sector exposure
- Global diversification
- Includes robotics as well as AI-related companies
- May reduce dependence on a small group of large-cap technology stocks
Main risk
Broader diversification does not eliminate risk. Smaller international companies and industrial businesses may increase volatility during weak economic conditions.
7. First Trust Nasdaq AI and Robotics ETF (ROBT)
ROBT tracks companies involved in artificial intelligence and robotics.
It is designed for investors who want exposure to AI-related growth while also including companies involved in automation and robotics.
This may make it a suitable option for investors who believe AI adoption will continue to spread through industries such as logistics, manufacturing, healthcare, and enterprise technology.
Why investors watch ROBT
- Combines AI and robotics exposure
- Potentially broader than a pure semiconductor fund
- Useful for investors seeking long-term automation exposure
- Includes companies from different parts of the technology supply chain
Main risk
Robotics and AI are both competitive industries. Some companies may struggle to turn innovation into sustained profits, especially if spending slows.
8. iShares A.I. Innovation and Tech Active ETF (BAI)
BAI is actively managed, meaning the fund managers select stocks rather than simply tracking a fixed index.
The goal is to identify companies that may benefit from AI and technology trends across the AI stack, including hardware, software, tools, infrastructure, and applications.
This can appeal to investors who want professional security selection rather than a rules-based index approach.
Why investors watch BAI
- Active portfolio management
- Can adjust holdings as AI trends change
- Exposure across the broader AI technology stack
- May identify opportunities outside major benchmark holdings
Main risk
Active management does not guarantee better performance. The fund may underperform its benchmark, and investors should consider the fee structure before investing.
For readers new to investing, our guide to the best stocks for beginners and new traders explains how to start building a portfolio with clearer goals and manageable risk.
9. Roundhill Generative AI & Technology ETF (CHAT)
CHAT is focused on generative AI and the companies that may benefit from its adoption.
Generative AI includes tools that can create text, images, video, code, music, and other forms of digital content. The ETF may be especially relevant for investors interested in companies that build AI models, provide AI infrastructure, or use AI to improve productivity.
AI ETFs can be a useful option for investors seeking exposure to innovation-led growth. For more ideas beyond the AI sector, explore our guide to the best growth stocks.
Why investors watch CHAT
- More direct exposure to generative AI
- May include companies benefiting from AI software adoption
- Suitable for investors seeking a higher-growth AI theme
- Can provide exposure to AI hardware and application companies
Main risk
Generative AI is a fast-moving theme. Valuations can become expensive, competition is intense, and market expectations may change quickly.
10. Global X AI Semiconductor & Quantum ETF (CHPX)
CHPX focuses on AI semiconductors and quantum technology.
AI depends heavily on advanced chips, high-speed memory, networking, and computing power. This makes semiconductor companies an important part of the AI growth story.
CHPX may suit investors who believe AI infrastructure and computing demand will remain a major long-term trend.
For investors seeking exposure beyond AI and technology, explore our guide to the best platinum stocks and the factors that can influence this precious-metals market.
Why investors watch CHPX
- Focus on AI chips and computing infrastructure
- Exposure to semiconductor companies supporting AI demand
- Potential upside from continued demand for advanced computing
- Useful for investors who want a more focused AI infrastructure play
Main risk
Semiconductor stocks can be cyclical. They may be affected by inventory changes, trade restrictions, supply-chain disruptions, and changes in capital spending.
Benefits of Investing in AI ETFs
AI ETFs offer several potential advantages, especially for investors who want exposure to artificial intelligence without selecting individual stocks.
Diversification
An ETF can hold dozens of companies. This means one weak stock is less likely to damage the entire investment compared with owning only one AI company.
For example, an AI ETF may include semiconductor firms, software companies, cloud providers, and robotics businesses. This provides exposure to multiple parts of the AI market.
Access to a Major Growth Theme
Artificial intelligence is being adopted across many industries. AI ETFs allow investors to participate in this trend through one investment product.
Instead of trying to predict which company will dominate AI, an investor can invest in a group of companies connected to the theme. For traders who want to time AI ETF entries and manage risk more effectively, learn how to apply Elliott Wave Theory in real trading to identify trends, corrections, and potential turning points.
Easier Than Picking Individual AI Stocks
Choosing one AI stock can be difficult. Some companies have strong technology but high valuations. Others may have lower valuations but limited growth potential.
An ETF can simplify the process by spreading exposure across multiple holdings.
Liquidity and Flexibility
Most ETFs trade on stock exchanges throughout the day. Investors can buy and sell shares during normal market hours, similar to individual stocks.
AI ETFs can add growth exposure to a portfolio, while gold ETFs may offer diversification during uncertain market conditions. Explore our guide to the best gold ETFs to compare leading options for precious-metals exposure.
Transparent Holdings
Many ETFs publish their holdings regularly. This allows investors to check whether the fund actually owns companies they want exposure to.
Risks of Trading and Investing in AI ETFs
AI ETFs have strong long-term potential, but they are not low-risk investments.
High Valuations
AI-related stocks can become expensive when market excitement is high. If future earnings fail to meet expectations, prices may fall sharply.
Technology Sector Concentration
Even a diversified AI ETF may still be heavily exposed to technology and growth stocks. This can make the fund sensitive to interest rates, market sentiment, and changes in technology spending.
Overlapping Holdings
Many AI ETFs own similar companies. Buying several AI funds does not always create real diversification.
For example, an investor who owns an AI ETF, a semiconductor ETF, and a large-cap technology ETF may have significant exposure to the same companies.
For traders using AI ETFs, strong chart-reading skills can help identify better entry and exit levels. Learn more in our guide to mastering Elliott Wave pattern recognition.
Competition and Disruption
AI is evolving quickly. A company that appears to be a leader today may face new competition tomorrow.
Regulatory and Political Risk
AI regulation, data privacy rules, export controls, and global trade policies can affect AI companies and semiconductor businesses.
Market Volatility
Thematic ETFs can rise quickly during strong trends and decline quickly when sentiment changes. Investors should expect periods of volatility.
To strengthen your chart-based approach when trading AI ETFs, explore our guide to Elliott Wave tools and indicators for practical tools that can help analyse market trends, momentum, and potential turning points.
Things to Consider Before Choosing an AI ETF
Before buying an AI ETF, compare more than recent performance.
1. Understand the Fund’s Main Theme
Ask what the ETF actually owns.
Does it focus on:
- AI software?
- Semiconductors?
- Robotics?
- Generative AI?
- Data centres?
- Broad technology companies?
A fund labelled “AI” may have a very different portfolio from another AI ETF.
2. Check the Expense Ratio
The expense ratio is the annual fee charged by the fund.
A small fee difference may not matter over one year, but it can become important over a long investment period.
For example, a 0.45% annual expense ratio is generally less costly than a 0.75% expense ratio, assuming all other factors are equal.
AI ETFs can offer sector-specific exposure, while major stock indices provide a broader view of market trends. Explore our guide to the best indices to trade to learn which global indices traders commonly watch.
3. Review the Top Holdings
Look at the fund’s top holdings before investing.
If the ETF already owns companies you hold individually, you may be increasing your exposure more than you realise.
For a deeper understanding of market trends and price cycles, explore our complete guide to Elliott Wave Theory. It can help traders analyse AI ETFs and other markets with a more structured approach.
4. Check Fund Size and Liquidity
Larger funds often have stronger liquidity and may be less likely to close than very small ETFs.
Also review the bid-ask spread. A wider spread can increase trading costs, especially for short-term traders.
5. Consider Active vs Passive Management
Passive ETFs track an index and usually follow set rules.
Active ETFs allow managers to choose and adjust holdings. This may provide flexibility, but active funds can have higher costs and may underperform.
6. Match the ETF to Your Time Horizon
AI investing can be volatile in the short term.
Investors with a long-term horizon may be better able to handle market pullbacks. Short-term traders should use clear risk-management rules and avoid chasing sharp rallies.
To learn how Elliott Wave analysis can support better trade planning and risk management, read our complete Elliott Wave trading guide.
7. Avoid Investing Only Because of Hype
AI is an important long-term trend, but a strong theme does not always mean every AI stock or ETF is a good purchase at every price.
A better approach is to build a plan, invest gradually if appropriate, and avoid making decisions based only on headlines.
How to Build an AI ETF Strategy
A simple strategy may be more effective than trying to trade every short-term movement.
For long-term investors
A long-term investor may consider using one AI ETF as a small part of a diversified portfolio.
For example, an investor could have broad market ETFs as the core of the portfolio and use an AI ETF as a growth-oriented satellite position.
For intermediate investors
Intermediate investors may compare two different AI ETF approaches:
- A broad AI ETF for diversified exposure
- A semiconductor or robotics ETF for a more focused allocation
The key is to avoid excessive overlap.
AI growth is also increasing demand for reliable electricity and data-centre infrastructure. Explore our guide to nuclear energy and power stocks to learn about another sector linked to rising energy needs.
For traders
Traders can use technical analysis to identify trend direction, support and resistance levels, momentum, and potential risk points.
However, AI ETFs can move sharply around earnings reports, interest-rate decisions, semiconductor demand updates, and major AI-related announcements.
Use stop-loss levels, position sizing, and a clear trading plan.
AI ETFs vs Individual AI Stocks
AI ETFs and individual AI stocks serve different purposes.
Individual stocks may offer higher upside if the company performs exceptionally well. However, they also carry company-specific risk.
AI ETFs provide diversification, but they may not rise as much as the strongest individual stock during a major rally.
A simple comparison:
| AI ETFs | Individual AI Stocks |
|---|---|
| Diversified exposure | Concentrated exposure |
| Lower company-specific risk | Higher company-specific risk |
| Easier for beginners | Requires deeper research |
| May hold dozens of companies | Focused on one company |
| Can reduce the impact of one poor performer | Can produce larger gains or losses |
For many beginners, an AI ETF can be a more practical starting point than trying to identify the next major AI winner.
Before choosing an AI ETF, understand how it differs from other passive investment options. Read our guide on ETF vs index fund to compare their structure, costs, and investment approach.
Final Thoughts
The best AI ETF depends on what type of AI exposure you want.
Investors looking for broad AI exposure may prefer funds such as AIQ, ARTY, or WTAI. Those interested in robotics and automation may consider BOTZ, IRBO, or ROBT. Investors seeking a more aggressive generative AI or semiconductor angle may look at CHAT or CHPX.
The important point is to understand what each ETF owns, how much it costs, and how it fits into your overall investment strategy.
AI is likely to remain a major investment theme, but volatility should be expected. Diversification, careful research, and realistic expectations remain essential.
Traders who also follow currency markets can explore our guide to forex signals to understand how trading signals can support market analysis and risk management.
Frequently Asked Questions
What is the best AI ETF?
There is no single best AI ETF for every investor. AIQ, ARTY, WTAI, THNQ, BOTZ, IRBO, ROBT, BAI, CHAT, and CHPX all offer different forms of AI exposure.
The best choice depends on whether you want broad AI exposure, robotics exposure, generative AI exposure, or semiconductor-focused exposure.
Are AI ETFs a good investment?
AI ETFs may be useful for investors who believe artificial intelligence will continue to grow over the long term. However, they can be volatile and should be part of a diversified investment plan.
Do AI ETFs own Nvidia?
Many AI ETFs hold major semiconductor and technology companies, but holdings can change. Always review the current fund holdings before investing.
Are AI ETFs better than AI stocks?
AI ETFs are generally more diversified than individual AI stocks. This can reduce company-specific risk, but it may also limit gains compared with owning the strongest individual stock.
What are the risks of AI ETFs?
The main risks include high valuations, technology-sector concentration, market volatility, overlapping holdings, regulation, and slower-than-expected AI adoption.
Can beginners invest in AI ETFs?
Beginners can invest in AI ETFs, but they should understand the risks and avoid putting too much of their portfolio into one narrow theme. A diversified portfolio is usually more suitable than relying only on AI investments.
What is the difference between AI ETFs and robotics ETFs?
AI ETFs may focus on software, semiconductors, cloud computing, and data infrastructure. Robotics ETFs focus more on automation, industrial robotics, healthcare technology, and AI-enabled machinery.
How often should I review an AI ETF?
Long-term investors may review their ETF holdings every few months or when there is a major change in the fund’s strategy, fees, holdings, or market environment. Traders may need to monitor positions more closely.
