Best AI ETFs To Watch or Invest In Right Now
Written by
Joseph Hostetler
Edited by
Joe Evans
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Artificial intelligence has moved from a niche technology to a core driver of economic growth. AI tools now power cloud computing, digital advertising, autonomous systems and enterprise software.
Rather than betting on a single company, many investors use AI ETFs to gain broad exposure to the companies building and enabling AI infrastructure.
AI ETFs vary widely in approach. Some focus on pure-play AI developers, while others emphasize semiconductors, cloud platforms or robotics.
Understanding how each fund defines “AI exposure” is essential before investing.
At a Glance: Best AI ETFs
ETF Ticker AI Exposure Type Risk Profile/Use Case One-Line Reason It Stands Out Global X Robotics & Artificial Intelligence ETF BOTZ Robotics and automation High Direct exposure to industrial and AI automation iShares Robotics and Artificial Intelligence ETF IRBO Broad AI and robotics Medium to high Global, diversified AI exposure ARK Autonomous Technology & Robotics ETF ARKQ Disruptive innovation High Active management with AI theme ROBO Global Robotics and Automation Index ETF ROBO Robotics and AI supply chain High Focus on smaller, specialized firms VanEck Semiconductor ETF SMH AI chip infrastructure Medium to high Semiconductor backbone of AI growth Global X Artificial Intelligence & Technology ETF AIQ AI software and platforms Medium Broad exposure across AI-enabled companies Fund strategies and exposures are based on current sponsor disclosures.
Why Investors Are Interested in AI ETFs
AI spending continues to rise across industries. According to McKinsey & Company, AI adoption is accelerating as companies integrate machine learning into operations, marketing and decision-making.
The International Monetary Fund has also noted that AI could impact a significant share of global jobs, highlighting its broad economic influence.
AI ETFs allow investors to participate in this growth while reducing single-stock risk.
What Is an AI ETF?
An AI ETF is an exchange-traded fund that invests in companies involved in artificial intelligence, machine learning, robotics or related technologies. Some funds track indexes, while others are actively managed.
The U.S. Securities and Exchange Commission explains that thematic ETFs concentrate on specific trends, which can increase volatility compared to broad market funds.
Best AI ETFs To Consider
Global X Robotics & Artificial Intelligence ETF (BOTZ)
BOTZ focuses on companies involved in robotics and industrial automation. According to Global X disclosures, the fund includes firms that design robots, sensors and automation software. Performance can be cyclical, tied to manufacturing investment trends.
iShares Robotics and Artificial Intelligence ETF (IRBO)
IRBO provides global exposure to companies involved in AI and robotics. BlackRock reports that the fund uses a rules-based index with equal weighting, reducing reliance on mega-cap stocks. International exposure adds diversification and currency risk.
ARK Autonomous Technology & Robotics ETF (ARKQ)
ARKQ is actively managed and targets companies involved in autonomous systems, AI and robotics. According to ARK Invest disclosures, the fund emphasizes long-term disruptive innovation. Active management can lead to higher volatility and performance dispersion.
ROBO Global Robotics and Automation Index ETF (ROBO)
ROBO invests across the robotics and automation supply chain, including smaller and mid-sized companies. Fund documentation highlights exposure to niche technology providers. Smaller-cap exposure increases growth potential and risk.
VanEck Semiconductor ETF (SMH)
SMH focuses on semiconductor companies that manufacture chips essential for AI workloads. VanEck disclosures show heavy exposure to chipmakers benefiting from data center and AI demand. Semiconductor cycles can amplify volatility.
Global X Artificial Intelligence & Technology ETF (AIQ)
AIQ invests in companies developing or using AI technology, including software platforms and cloud providers. According to Global X, the fund aims for diversified AI exposure beyond robotics alone. Returns depend on broader tech sector performance.
AI ETFs vs. Buying Individual AI Stocks
| Feature | AI ETFs | Individual AI Stocks |
|---|---|---|
| Diversification | High | Low |
| Volatility | Moderate to high | High |
| Research Required | Lower | Higher |
| Upside Potential | Blended | Concentrated |
| Risk Management | Built-in | Investor-managed |
The Federal Reserve has noted that emerging technologies can drive productivity growth but also create valuation risk during adoption cycles.
Risks To Understand Before Investing
AI ETFs are thematic investments and can experience sharp drawdowns if sentiment shifts. The SEC warns that narrow investment themes may underperform for extended periods.
Other risks include rapid technological change, regulatory scrutiny and reliance on capital spending.
How AI ETFs Fit Into a Portfolio
Many investors use AI ETFs as a satellite growth allocation, complementing diversified core holdings. Vanguard research suggests that thematic funds should remain a smaller portion of a portfolio due to higher risk.
Final Take to GO
AI ETFs offer a diversified way to invest in one of the most influential technology trends shaping the global economy.
Funds like BOTZ and IRBO provide direct exposure to automation and AI development, while semiconductor-focused ETFs like SMH target the infrastructure behind AI growth.
For most investors, AI ETFs work best as a measured addition to a diversified long-term portfolio.
Best AI ETFs FAQ
- What is an AI ETF?
- An AI ETF invests in companies involved in artificial intelligence, machine learning, robotics or related technologies.
- Are AI ETFs risky?
- Yes, AI ETFs are thematic investments and can be more volatile than broad market funds.
- Do AI ETFs focus only on tech companies?
- Many include industrial, semiconductor and software companies that enable AI applications.
- Are AI ETFs good long-term investments?
- They can be, but long-term success depends on adoption, valuations and portfolio sizing.
- How much of a portfolio should be in AI ETFs?
- Many investors limit AI ETFs to a smaller allocation due to higher volatility.
Information is accurate as of Jan. 27, 2026.
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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- Digital.gov "Artificial Intelligence"
- Investor.gov "Beginners’ Guide to Asset Allocation, Diversification, and Rebalancing"
- Congressional Budget Office "Artificial Intelligence and Its Potential Effects on the Economy and the Federal Budget"
- McKinsey "The state of AI in 2025: Agents, innovation, and transformation"
- International Monetary Fund "AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity."
- U.S. SEC "Do ETFs Increase Volatility?"
- U.S. Federal Reserve "Generative AI at the Crossroads: Light Bulb, Dynamo, or Microscope?"
- Global X "Global X Robotics & Artificial Intelligence ETF (BOTZ)"
- iShares "iShares Robotics and Artificial Intelligence ETF (IRBO)"
- ARK Invest "ARK Autonomous Technology & Robotics ETF (ARKQ)"
- ROBO Global "ROBO Global Robotics and Automation Index ETF (ROBO)"
- VanEck "VanEck Semiconductor ETF (SMH)"
- Global X "Global X Artificial Intelligence & Technology ETF (AIQ)"
