the Best AI ETFs to Buy for 2025
the Best AI ETFs to Buy for 2025
Market volatility has long been driven by macroeconomic events, with major market swings often tied to the release of key economic indicators.
Most investors are familiar with fluctuations during events such as Federal Open Market Committee meetings, where the Federal Reserve sets interest rate policy; gross domestic product releases, which measure economic output; and consumer price index data, which tracks inflation.
But recently, company-specific events have had an outsized impact on market volatility. One of the most significant of these has been the quarterly earnings reports of Nvidia Corp. (ticker: NVDA).
"In another widely anticipated earnings report, NVDA continued its impressive streak of beating top- and bottom-line expectations, having surprised to the upside for the past eight quarters," says Thomas DiFazio, ETF strategist at Roundhill Investments. "Blackwell chips are getting out the door with demand described as 'amazing,' while AI spending plans from its largest customers have only been reaffirmed."
Nvidia's market influence stems from its high weighting in the S&P 500, thanks to the index's market-cap-weighting strategy and Nvidia's meteoric growth – now boasting a valuation near $3 trillion.
The company's GPUs are critical components in Big Tech's artificial intelligence (AI) solutions, as they provide the computational power needed for machine learning and data processing. This demand has led to massive GPU purchases by customers believed to be Magnificent Seven companies like Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT) and Alphabet Inc. (GOOG, GOOGL), all of which have their own AI initiatives.
"Broadly speaking, capital expenditures for AI remain high, however, investors are increasingly scrutinizing the return on investment for these expenditures," says Arne Noack, regional investment head of Xtrackers, Americas, at DWS Group. "In other words, it will be important to see how adoption of AI will accelerate growth, increase productivity or reduce costs across the economic value chain."
For now, much of the market hype surrounding AI is driving valuations to levels close to the dot-com bubble, with mega-cap tech stocks like Nvidia at the forefront of this surge. However, investing directly in these stocks is not the only way to gain exposure to the AI theme.
Instead of trying to pick individual winners, investors can access the AI growth story through a thematic exchange-traded fund (ETF). These funds use either a rules-based index or the expertise of a portfolio manager and research team to build a diversified basket of AI-focused companies under a single ticker.
"We're in the early stages of the AI cycle, and proper diversification is extremely important – be it across company stages or geographies – because it's difficult to pick a winner or two this early," says Tejas Dessai, director of thematic research at Global X ETFs. "With a thematic ETF, you're following an idea as opposed to a complex strategy."
Here are six of the best AI ETFs to buy now:
ETF
Xtrackers Artificial Intelligence and Big Data ETF (XAIX)
Roundhill Generative AI & Technology ETF (CHAT)
iShares Future AI & Tech ETF (ARTY)
Global X Artificial Intelligence & Technology ETF (AIQ)
Global X Robotics & Artificial Intelligence ETF (BOTZ)
Invesco AI and Next Gen Software ETF (IGPT)
Most investors are familiar with fluctuations during events such as Federal Open Market Committee meetings, where the Federal Reserve sets interest rate policy; gross domestic product releases, which measure economic output; and consumer price index data, which tracks inflation.
But recently, company-specific events have had an outsized impact on market volatility. One of the most significant of these has been the quarterly earnings reports of Nvidia Corp. (ticker: NVDA).
"In another widely anticipated earnings report, NVDA continued its impressive streak of beating top- and bottom-line expectations, having surprised to the upside for the past eight quarters," says Thomas DiFazio, ETF strategist at Roundhill Investments. "Blackwell chips are getting out the door with demand described as 'amazing,' while AI spending plans from its largest customers have only been reaffirmed."
Nvidia's market influence stems from its high weighting in the S&P 500, thanks to the index's market-cap-weighting strategy and Nvidia's meteoric growth – now boasting a valuation near $3 trillion.
The company's GPUs are critical components in Big Tech's artificial intelligence (AI) solutions, as they provide the computational power needed for machine learning and data processing. This demand has led to massive GPU purchases by customers believed to be Magnificent Seven companies like Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT) and Alphabet Inc. (GOOG, GOOGL), all of which have their own AI initiatives.
"Broadly speaking, capital expenditures for AI remain high, however, investors are increasingly scrutinizing the return on investment for these expenditures," says Arne Noack, regional investment head of Xtrackers, Americas, at DWS Group. "In other words, it will be important to see how adoption of AI will accelerate growth, increase productivity or reduce costs across the economic value chain."
For now, much of the market hype surrounding AI is driving valuations to levels close to the dot-com bubble, with mega-cap tech stocks like Nvidia at the forefront of this surge. However, investing directly in these stocks is not the only way to gain exposure to the AI theme.
Instead of trying to pick individual winners, investors can access the AI growth story through a thematic exchange-traded fund (ETF). These funds use either a rules-based index or the expertise of a portfolio manager and research team to build a diversified basket of AI-focused companies under a single ticker.
"We're in the early stages of the AI cycle, and proper diversification is extremely important – be it across company stages or geographies – because it's difficult to pick a winner or two this early," says Tejas Dessai, director of thematic research at Global X ETFs. "With a thematic ETF, you're following an idea as opposed to a complex strategy."
Here are six of the best AI ETFs to buy now:
ETF
Xtrackers Artificial Intelligence and Big Data ETF (XAIX)
Roundhill Generative AI & Technology ETF (CHAT)
iShares Future AI & Tech ETF (ARTY)
Global X Artificial Intelligence & Technology ETF (AIQ)
Global X Robotics & Artificial Intelligence ETF (BOTZ)
Invesco AI and Next Gen Software ETF (IGPT)
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Re: the Best AI ETFs to Buy for 2025
Xtrackers Artificial Intelligence and Big Data ETF (XAIX)
"With cost reduction and commoditization of large language models, AI users and investors may choose to shift their focus to applications and use cases like software," Noack explains. "We believe the theme remains relevant and that a diversified portfolio, focusing on companies with strong patent activity, may be an interesting approach." For AI exposure, Xtrackers offers XAIX at a reasonable 0.35% expense ratio.
"Many of the existing funds in the market utilize backward-looking mechanisms to determine if a company should be classified as an AI company," Noack explains. "On the other hand, XAIX's approach seeks to be forward-looking, as its underlying index screens for approved patents in fields related to AI." This ETF is also fairly tax efficient, thanks to a low 0.7% 30-day SEC yield.
"With cost reduction and commoditization of large language models, AI users and investors may choose to shift their focus to applications and use cases like software," Noack explains. "We believe the theme remains relevant and that a diversified portfolio, focusing on companies with strong patent activity, may be an interesting approach." For AI exposure, Xtrackers offers XAIX at a reasonable 0.35% expense ratio.
"Many of the existing funds in the market utilize backward-looking mechanisms to determine if a company should be classified as an AI company," Noack explains. "On the other hand, XAIX's approach seeks to be forward-looking, as its underlying index screens for approved patents in fields related to AI." This ETF is also fairly tax efficient, thanks to a low 0.7% 30-day SEC yield.
Re: the Best AI ETFs to Buy for 2025
Roundhill Generative AI & Technology ETF (CHAT)
"CHAT selects stocks using a proprietary methodology that combines a transcript score and sector score to evaluate companies' relevance to generative AI, factoring in their revenue, profit and R&D investment in AI technologies," explains Dave Mazza, CEO at Roundhill Investments. "Companies are then scored and selected based on their exposure to AI, market capitalization and liquidity."
Unlike XAIX, CHAT is actively managed and does not track an index. Current top holdings include Nvidia, Alphabet and Microsoft. As an ETF, CHAT also benefits from the creation/redemption in-kind mechanism, which reduces the size and frequency of capital gains distributions, a problem faced by many active mutual funds. However, the ETF does charge a higher 0.75% expense ratio.
"CHAT selects stocks using a proprietary methodology that combines a transcript score and sector score to evaluate companies' relevance to generative AI, factoring in their revenue, profit and R&D investment in AI technologies," explains Dave Mazza, CEO at Roundhill Investments. "Companies are then scored and selected based on their exposure to AI, market capitalization and liquidity."
Unlike XAIX, CHAT is actively managed and does not track an index. Current top holdings include Nvidia, Alphabet and Microsoft. As an ETF, CHAT also benefits from the creation/redemption in-kind mechanism, which reduces the size and frequency of capital gains distributions, a problem faced by many active mutual funds. However, the ETF does charge a higher 0.75% expense ratio.
Re: the Best AI ETFs to Buy for 2025
iShares Future AI & Tech ETF (ARTY)
Investors preferring to stick with a "big box" ETF provider like iShares over boutique issuers may prefer ARTY for AI exposure. This ETF is well-capitalized, with around $819 million in assets under management (AUM), and has been trading since June 2018. It currently tracks the Morningstar Global Artificial Intelligence Select Index and charges a reasonable 0.47% expense ratio.
ARTY's current portfolio consists of 50 companies with exposure to generative AI, data centers, software and AI value-added services. Top holdings include Super Micro Computer Inc. (SMCI), Broadcom Inc. (AVGO) and Nvidia. The ETF is dominated by domestic equities, at 83% of its portfolio, with a smaller allocation to companies from Japan, Taiwan and France.
Investors preferring to stick with a "big box" ETF provider like iShares over boutique issuers may prefer ARTY for AI exposure. This ETF is well-capitalized, with around $819 million in assets under management (AUM), and has been trading since June 2018. It currently tracks the Morningstar Global Artificial Intelligence Select Index and charges a reasonable 0.47% expense ratio.
ARTY's current portfolio consists of 50 companies with exposure to generative AI, data centers, software and AI value-added services. Top holdings include Super Micro Computer Inc. (SMCI), Broadcom Inc. (AVGO) and Nvidia. The ETF is dominated by domestic equities, at 83% of its portfolio, with a smaller allocation to companies from Japan, Taiwan and France.
Re: the Best AI ETFs to Buy for 2025
Global X Artificial Intelligence & Technology ETF (AIQ)
AI-related stocks started 2025 facing numerous headwinds. Notably, this included competition risk from China's new large language model DeepSeek. However, some experts believe the recent correction to be a buying opportunity. "AI's disruption of our economy accelerated overnight, so a persistent sell-off could be an opportunity for investors who have stayed on the sidelines," Dessai says.
Global X's flagship AI ETF is AIQ. It tracks the Indxx Artificial Intelligence & Big Data Index, which spans 85 global companies. Notable top holdings currently include major Chinese tech firms like Tencent Holdings Ltd. (OTC: TCEHY), Alibaba Group Holding Ltd. (BABA), and also some Magnificent Seven members like Apple Inc. (AAPL) and Meta Platforms Inc. (META). The ETF charges a 0.68% expense ratio.
AI-related stocks started 2025 facing numerous headwinds. Notably, this included competition risk from China's new large language model DeepSeek. However, some experts believe the recent correction to be a buying opportunity. "AI's disruption of our economy accelerated overnight, so a persistent sell-off could be an opportunity for investors who have stayed on the sidelines," Dessai says.
Global X's flagship AI ETF is AIQ. It tracks the Indxx Artificial Intelligence & Big Data Index, which spans 85 global companies. Notable top holdings currently include major Chinese tech firms like Tencent Holdings Ltd. (OTC: TCEHY), Alibaba Group Holding Ltd. (BABA), and also some Magnificent Seven members like Apple Inc. (AAPL) and Meta Platforms Inc. (META). The ETF charges a 0.68% expense ratio.
Re: the Best AI ETFs to Buy for 2025
Global X Robotics & Artificial Intelligence ETF (BOTZ)
"When you think about smartphones, laptops or even mobile applications, lower prices and cheaper development costs didn't shrink the market but expanded it as innovation accelerated," Dessai explains. "AI could follow the same trajectory, embedding itself into the physical world – from factories and drones to delivery vans and buildings. To invest in AI deployment, consider BOTZ.
"We see BOTZ as a more niche play on applied automation," Dessai says. Instead of focusing on the tech companies developing AI, BOTZ emphasizes the industrial and health care companies that are actually deploying AI and robotics solutions. It tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index, which has 46 global holdings. BOTZ charges a 0.68% expense ratio.
"When you think about smartphones, laptops or even mobile applications, lower prices and cheaper development costs didn't shrink the market but expanded it as innovation accelerated," Dessai explains. "AI could follow the same trajectory, embedding itself into the physical world – from factories and drones to delivery vans and buildings. To invest in AI deployment, consider BOTZ.
"We see BOTZ as a more niche play on applied automation," Dessai says. Instead of focusing on the tech companies developing AI, BOTZ emphasizes the industrial and health care companies that are actually deploying AI and robotics solutions. It tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index, which has 46 global holdings. BOTZ charges a 0.68% expense ratio.
Re: the Best AI ETFs to Buy for 2025
Invesco AI and Next Gen Software ETF (IGPT)
"We believe the AI trend will broaden in scope to encompass additional segments of the market, with new technological advancements, a more stable interest rate environment and the ongoing impact of fiscal stimulus broadening innovation across multiple industries," says Rene Reyna, head of thematic and specialty product ETF strategy at Invesco. Invesco's thematic AI ETF is IGPT.
This ETF uses the Stoxx World AC NexGen Software Development Index as a benchmark. "IGPT's index targets about 100 companies from across the globe that generate revenue from various forms of software and AI, such as data storage, robotics, autonomous vehicles, semiconductors and web platforms," Reyna says. It is also cheaper than AIQ and BOTZ, with a 0.58% expense ratio.
"We believe the AI trend will broaden in scope to encompass additional segments of the market, with new technological advancements, a more stable interest rate environment and the ongoing impact of fiscal stimulus broadening innovation across multiple industries," says Rene Reyna, head of thematic and specialty product ETF strategy at Invesco. Invesco's thematic AI ETF is IGPT.
This ETF uses the Stoxx World AC NexGen Software Development Index as a benchmark. "IGPT's index targets about 100 companies from across the globe that generate revenue from various forms of software and AI, such as data storage, robotics, autonomous vehicles, semiconductors and web platforms," Reyna says. It is also cheaper than AIQ and BOTZ, with a 0.58% expense ratio.