8 Best Artificial Intelligence ETFs To Invest In

AI chatbot usage and concepts.
Vertigo3d / Getty Images

Artificial intelligence, or AI, is everywhere. While this technology has long been used in many of the electronics we use every day, the current generation of AI tools has brought machine learning to a whole new level. And wherever innovation lies, can the stock market be far behind?

See: 3 Things You Must Do When Your Savings Reach $50,000

Best AI ETFs To Invest In for 2023

Investing in individual stocks in such a nascent industry can be risky. A good option for capitalizing on the popularity of AI is to invest in exchange-traded funds, or ETFs, which give you roughly the same performance as the sector (or some part of it) as a whole. Here are some of the most promising artificial intelligence ETFs to invest in for 2023:

  1. Global X Artificial Intelligence and Technology ETF (AIQ)
  2. Global X Robotics and Artificial Intelligence ETF (BOTZ)
  3. Robo Global Artificial Intelligence ETF (THNQ)
  4. Robo Global Robotics and Automation Index ETF (ROBO)
  5. iShares Robotics and Artificial Intelligence Multisector ETF (IRBO)
  6. First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
  7. iShares Exponential Technologies ETF (XT)
  8. Ark Autonomous Technology and Robotics ETF (ARKQ)

1. Global X Artificial Intelligence and Technology ETF

Global X Artificial Intelligence and Technology ETF (Nasdaq: AIQ) has returned 47.04% year to date, closing at $29.61 on Nov. 27. This fund is heavily weighted in technology, as the name suggests, but also holds communications services and consumer cyclical stocks. Top positions by market value are Intel (INTC), Adobe (ADBE), ServiceNow (NOW), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), IBM (IBM) and Netflix (NFLX).

2. Global X Robotics and Artificial Intelligence ETF

Global X Robotics and Artificial Intelligence ETF (Nasdaq: BOTZ) closed at $26.25 per share on Nov. 27, up 27.25% since the beginning of the year. This ETF’s top holdings by market value are Nvidia (NVDA), Intuitive Surgical (ISRG) and ABB (ABBN SW).

Investing for Everyone

3. Robo Global Artificial Intelligence ETF

Robo Global Artificial Intelligence ETF (NYSE: THNQ) is up 43.69% so far this year and closed at $37.71 on Nov. 27. This is an index fund that tracks the performance of publicly traded companies that derive much of their revenue from the artificial intelligence field. Its top holdings are Alteryx (AYX), Splunk (SPLK), Microsoft (MSFT) and Crowdstrike Holdings (CRWD).

4. Robo Global Robotics and Automation Index ETF

Robo Global Robotics and Automation Index ETF (Nasdaq: ROBO) closed at $51.82 on Nov. 27 and is up 11.61% year to date. Its top 10 holdings represent just 17.98% of its total assets, and just one position, Airtac International Group, makes up more than 2% of the fund. Other top holdings include ServiceNow (NOW), Keyence (6861.T) and Intuitive Surgical (ISRG).

5. iShares Robotics and Artificial Intelligence Multisector ETF

IShares Robotics and Artificial Intelligence Multisector ETF (NYSE: IRBO) holds positions in tech and communications companies like Faraday Technology (3035.TW), Meitu (1357.HK), Alchip Technologies (3661.TW) and FuboTV (FUBO). The index is very heavily weighted toward technology, with 61.67% of its holdings in that sector. IRBO closed at $32.38 per share on Nov. 27 and is up 27.03% year to date.

6. First Trust Nasdaq Artificial Intelligence and Robotics ETF

One of the purest AI ETFs, First Trust Nasdaq Artificial Intelligence and Robotics ETF (Nasdaq: ROBT) invests at least 90% of net assets in companies that are in the Nasdaq CTA Artificial Intelligence and Robotics Index. ROBT is up 16.58% year to date and closed at $41.57 on Nov. 27. The technology sector makes up over half (59.64%) of the investments in this fund. UiPath (PATH) and AeroVironment (AVAV) are among the fund’s largest holdings.

Investing for Everyone

7. iShares Exponential Technologies ETF

IShares Exponential Technologies ETF (Nasdaq: XT) holds mostly technology stocks (54.74% of total holdings), including Meta Platforms (META), Nvidia (NVDA) and Palantir Technologies (PLTR). The fund closed at $54.77 on Nov. 27 and is up 16% year to date.

8. Ark Autonomous Technology and Robotics ETF

Ark Autonomous Technology and Robotics ETF (ARKQ) invests in autonomous technology and robotics companies that are disruptive innovators. It closed at $52.32 on Nov. 27 and is up 27.58% year to date. Top holdings include Tesla (TSLA), Kratos Defense & Security Solutions (KTOS) and UiPath (PATH).

ETFs That Actually Use AI

If you are really all in on AI, you might want to invest in an ETF that is managed by AI. While the jury is still out on whether AI can pick better stocks than an experienced fund manager, here are some funds that use AI to at least partially create their investing models.

VanEck Social Sentiment ETF

VanEck Social Sentiment ETF (NYSE: BUZZ) uses AI to help pick the large-cap stocks in the portfolio. The fund has returned 36.64% year to date and closed at $16.60 on Nov. 27. It’s heavy in technology but not as much as some of the AI-focused ETFs, with 26.37% of its positions in the technology sector. Top holdings include Microsoft (MSFT), Amazon (AMZN), The Walt Disney Co. (DIS) and Apple (AAPL).

Qraft AI-Enhanced US Large Cap Momentum ETF

Qraft AI-Enhanced U.S. Large Cap Momentum ETF (NYSE: AMOM) identifies the best momentum stocks using artificial intelligence. It closed at $32.11 on Nov. 27 and is up 22.36% so far this year. It holds positions in Eli Lilly (LLY), Amazon.com (AMZN), Alphabet (GOOGL), O’Reilly Automotive (ORLY) and other consumer, industrial and technology stocks.

Investing for Everyone

AI Powered Equity ETF

AI Powered Equity ETF (NYSE: AIEQ) uses EquBot, a quantitative model that runs on the IBM Watson platform to inform its holding decisions. It is up 0.42% year to date, significantly less than many ETFs in the sector, and it closed at $30.92 on Nov. 27. Top holdings include Plug Power (PLUG), Atlassian (TEAM) and Warner Bros. Discovery (WBD).

Final Take

Artificial intelligence technology is exciting and new and has generated a lot of interest in the investing world. Like any new and disruptive technology, it has the potential for immense growth, but there is also the possibility for a sharp decline. It’s important to look at AI as part of a diversified portfolio that includes assets in many sectors.

FAQ

If you're new to AI investments, you might feel like you've got a big learning curve. These frequently asked questions are a good place to start.
  • What is the best ETF for AI?
    • Global X Artificial Intelligence and Technology ETF is the top performer on the GOBankingRates list and could be the cream of the crop. In addition to producing stellar returns, the fund invests in blue-chip stocks, including tried-and-true companies like Adobe and IBM.
  • Does Vanguard have any AI funds?
    • No. The Vanguard Information Technology ETF invests in some of the same companies AI funds invest in, including Apple, Microsoft and Nvidia. However, it's not specifically an AI fund.
  • Is there an index for AI stocks?
    • Yes. The Nasdaq CTA Artificial Intelligence and Robotics Index tracks the performance of AI and robotics companies in the technology, industrial, medical and other sectors.
Investing for Everyone

Daria Uhlig contributed to the reporting for this article.

Data was compiled on Nov. 28, 2023, and is subject to change.

BEFORE YOU GO

See Today's Best
Banking Offers