What are the best AI ETFs for beginners?

BOTZ and IRBO are beginner-friendly picks with broad exposure and strong track records.

Like most tech investments, they carry higher volatility but offer strong long-term potential.

Do AI ETFs pay dividends?

Some may offer small dividends , but they’re primarily geared for growth, not income.

Is 2025 a good time to invest in AI ETFs?

Yes -- AI is being rapidly adopted across industries and ETFs offer a diversified way to tap into the trend.

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Best Artificial Intelligence ETFs to Watch or Invest In Right Now

May 22, 2025

5 min Read

Written by Joseph Hostetler

Edited by Joe Evans

Vertigo3d / Getty Images

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Artificial intelligence (AI) is everywhere. While this technology has long been used in many of the electronics we use daily, the current generation of AI tools has brought machine learning to a whole new level. And wherever innovation lies, the stock market isn’t far behind.

Here are some of the most promising artificial intelligence ETFs to invest in for long-term growth in 2025, chosen based on a combination of size, performance, expenses and exposure to various subsectors of the AI market.

Best AI ETFs in 2025

Here are some of the best AI ETFs to watch or invest in now, based on performance, holdings and growth potential:

ETF	Ticker	Expense Ratio	One-Year Return	Key Holdings	Focus Area
Global X Robotics & Artificial Intelligence ETF	BOTZ	0.68%	+22.5%	Nvidia, Intuitive Surgical, Keyence	Robotics and industrial AI
iShares Robotics and Artificial Intelligence ETF	IRBO	0.47%	+19.2%	Meta, Palantir, AMD	Broad AI and robotics exposure
ROBO Global Robotics and Automation ETF	ROBO	0.95%	+17.6%	Zebra Technologies, Fanuc, iRobot	Automation and robotics
First Trust Nasdaq Artificial Intelligence & Robotics ETF	ROBT	0.65%	+20.1%	Cadence Design, Ambarella, Alteryx	AI hardware and software platforms
WisdomTree Artificial Intelligence UCITS ETF	WTAI	0.40%	+21.3%	Alphabet, Microsoft, Tesla	Global AI-focused exposure

Bonus Pick: Roundhill Generative AI & Technology ETF (CHAT)

Focuses on generative AI innovators
Includes exposure to Nvidia, OpenAI-linked firms and cloud AI platforms

Why Invest in AI Funds?

AI isn’t just another tech trend — it’s a long-term growth story. Here’s why the benefits of AI ETFs make them attractive to investors:

Diversification: One purchase gives you access to dozens of companies driving the AI revolution.
Lower Barrier to Entry: AI ETFs are easier (and less risky) than picking individual AI stocks.
Exposure to Innovation: Many holdings are leaders in cloud, semiconductors, automation and data science.
Scalable Growth: As industries adopt AI tools, demand for these technologies — and their developers — skyrockets.

Whether you’re a cautious investor or a tech enthusiast, AI ETFs can fit into both growth and long-term strategies.

AI ETFs vs. Other Investment Options

Investment Type	Risk Level	Growth Potential	Volatility	Dividend Yield
AI ETFs	Medium-High	High	Medium-High	Low
Tech ETFs	Medium	High	Medium	Medium
Individual AI Stocks	High	Very High	High	Varies
S&P 500 ETFs	Medium	Moderate	Medium	Moderate

AI ETFs offer a more targeted growth approach than broad tech ETFs, with less risk than betting on individual AI stocks.

Risks of Investing in AI ETFs

Despite their upside, AI ETFs are not without challenges or risks. Here’s what to watch for:

Market Volatility: AI stocks can be sensitive to interest rates, tech sector trends and earnings reports.
Concentration Risk: Some ETFs rely heavily on a few large-cap names like Nvidia or Alphabet.
Hype Risk: Not every AI-related company is profitable — some are still speculative bets.
Global Competition: AI innovation is fast-paced and global, making it hard to predict long-term winners.

Do your research, read the fund’s prospectus and consider how much of your portfolio should be dedicated to growth.

Trends Shaping AI ETFs in 2025

Several factors are pushing AI ETFs into the spotlight this year:

Generative AI Boom: Tools like ChatGPT are driving enterprise investment in natural language AI.
Chip Demand Surge: AI computing needs powerful chips, benefiting firms like Nvidia and AMD.
Cloud Integration: Microsoft, Amazon and Google are embedding AI into every layer of their platforms.
Regulatory Momentum: Governments are developing AI guidelines, which may impact how companies deploy tech.

These trends suggest AI is not only here to stay — but may define the next decade of innovation.

How to Buy AI ETFs

Getting started is easier than you think. Here’s a step-by-step guide:

Open a Brokerage Account: Try platforms like Fidelity, Schwab, Vanguard or Robinhood.
Search By Ticker: Examples include BOTZ, ROBO, IRBO, ROBT and CHAT.
Review the Fund’s Data: Check expense ratio, holdings, and past performance.
Decide How Much to Invest: Start small with fractional shares if needed.
Monitor Trends: Follow tech news and AI advancements to stay informed.

You can also set up recurring investments to dollar-cost average over time.

Final Take to GO

The best AI ETFs in 2025 give investors a front-row seat to one of the most transformative technologies of our time. Whether you want exposure to robotics, semiconductors or generative AI, these funds provide a diversified, accessible way to invest in the future.

Ready to take the next step? Compare ETF options, choose one that fits your goals and start building your AI-powered portfolio today.

For more guidance, check out our guide to investing in ETFs or our tech sector investing tips to get started with confidence.

FAQs About AI ETFs

If you're new to AI investments and finding the best AI ETFs, you might feel like you've got a big learning curve. These frequently asked questions are a good place to start:

What are the best AI ETFs for beginners?
- BOTZ and IRBO are beginner-friendly picks with broad exposure and strong track records.
Are AI ETFs risky?
- Like most tech investments, they carry higher volatility but offer strong long-term potential.
Do AI ETFs pay dividends?
- Some may offer small dividends, but they’re primarily geared for growth, not income.
Is 2025 a good time to invest in AI ETFs?
- Yes -- AI is being rapidly adopted across industries and ETFs offer a diversified way to tap into the trend.

Information is accurate as of May 22, 2025.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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