In recent years, artificial intelligence (AI) has transformed many industries, from e-commerce to healthcare, finance and robotics. With the growing technological development and billion-dollar investments by giants such as Google, Microsoft, Nvidia and Tesla, more and more investors are looking to benefit from this digital revolution. Let's have a look at the Best Artificial Intelligence ETFs.
One of the most effective ways to invest in artificial intelligence without directly purchasing shares of individual companies is through AI ETFs , exchange-traded funds that offer diversified exposure to the most innovative companies in the sector.
But why invest in AI ETFs in 2025? The sector is constantly growing, fueled by the increase in demand for solutions based on machine learning, deep learning and advanced automation technologies. However, as with any investment, there are advantages and risks to consider. In this guide, we will analyze in detail what AI ETFs are, how they work and which are the best technology ETFs to invest in 2025.
What are AI ETFs?
AI ETFs are exchange traded funds that track the performance of a benchmark index of companies that are active in the development and implementation of AI. Unlike buying individual stocks, investing in AI ETFs provides greater diversification and more balanced exposure to the industry's leading players.
Unlike mutual funds, which are actively managed by a team of experts with more complex trading strategies, ETFs track a specific index and are traded on an exchange like regular stocks. This means they generally have lower management costs and offer greater liquidity than traditional mutual funds.
How AI and Technology Thematic ETFs Work
Thematic AI ETFs invest in companies that work in the fields of automation, machine learning, and technology infrastructure. These funds may include:
● Big Tech and semiconductor companies (such as Nvidia, AMD, Intel ), which develop chips and hardware for AI.
● Software and cloud computing (Microsoft, Google, Amazon), which provide solutions for machine learning and data analysis.
● Robotics and industrial automation (ABB, Fanuc, Boston Dynamics), which use AI for manufacturing and logistics.
The best AI ETFs in 2025 are designed to provide exposure to these growing segments, allowing investors to benefit from technological evolution without the risk of betting on a single company.
Investing in artificial intelligence ETFs can therefore represent a winning strategy for those who wish to enter the technology market with a diversified, liquid and long-term approach.
Why Invest in AI ETFs?
Artificial Intelligence is revolutionizing the world and the financial sector is no exception. Investing in AI ETFs is a smart strategy to exploit the long-term growth potential of this technology, with the benefit of diversification and passive management.
In recent years, AI has seen exponential growth, with applications in key sectors such as healthcare, finance, logistics, and industrial automation. According to market estimates, the AI sector could exceed $1.5 trillion by 2030 , with annual growth rates exceeding 20%. Giants such as Google, Microsoft, Nvidia, Tesla, and Amazon are investing billions in the development of advanced AI models, making the sector one of the best opportunities for investors.
AI isn’t just a passing trend; its impact is here to stay. As robotics, automation, and machine learning advance, the industries that rely on these technologies will continue to grow. This means investing in AI ETFs today provides exposure to a booming market, with potentially strong returns over the long term.
Buying individual shares of AI companies can be risky due to the volatility of the sector. With artificial intelligence ETFs , on the other hand, you get a balanced and diversified exposure, avoiding betting on a single company. In addition, many ETFs are passively managed, with lower costs than active funds and a performance that faithfully follows the trend of the sector.
Best Artificial Intelligence ETFs in 2025
The market offers numerous ETFs on artificial intelligence , each with a different strategy and geographical exposure. Here is a selection of the best AI ETFs for 2025.
1. Global X Robotics & Artificial Intelligence ETF (BOTZ)
The Global X Robotics & Artificial Intelligence ETF (BOTZ) is one of the most popular funds for those who want to invest in robotics and AI . This ETF focuses on leading companies that develop technologies for industrial automation, machine learning and advanced robotics. Among the main companies in the portfolio are Nvidia, Intuitive Surgical and ABB, giants of technological innovation.
2. iShares Robotics and Artificial Intelligence ETF (IRBO)
The iShares Robotics and Artificial Intelligence ETF (IRBO) is a globally diversified fund that invests in AI companies from different countries, reducing dependence on the US market. It includes companies engaged in the development of AI, automation and big data.
3. Invesco QQQ ETF
The Invesco QQQ ETF is not an AI-specific ETF, but it does offer great exposure to the tech giants that are driving the development of artificial intelligence, such as Google, Microsoft, Nvidia, Apple, and Amazon. It is one of the most traded and popular technology ETFs among investors.
4. WisdomTree Artificial Intelligence ETF (WTAI)
The WisdomTree Artificial Intelligence ETF (WTAI) is a fund focused on emerging AI small and medium-sized companies that are often less well-known but have enormous growth potential.
5. Ark Autonomous Technology & Robotics ETF (ARKQ)
The Ark Autonomous Technology & Robotics ETF (ARKQ) is managed by Ark Invest, a firm known for its innovative investment strategy. This ETF invests in AI and advanced robotics companies , with a focus on sectors such as autonomous mobility, drones, electric vehicles, and industrial automation.
How to choose the best AI ETF?
Investing in AI ETFs is a great way to gain exposure to a fast-growing sector, but choosing the right fund depends on several factors. Here are the key things to consider before buying an AI ETF.
ETF Strategy: Active vs Passive
ETFs can be either active or passive . Passively managed ETFs track an AI-related benchmark, such as the Nasdaq Artificial Intelligence & Robotics Index, and have lower management costs. Actively managed ETFs, on the other hand, try to beat the market through careful stock selection, but often have higher Total Expense Ratios (TERs). If you are looking for a long-term strategy with low costs, passive ETFs may be the best choice.
Historical performances
Before investing in an AI ETF , it is essential to analyze its past performance. Although historical performance does not guarantee future results, a strong track record can indicate the fund's ability to generate consistent returns. Some ETFs such as BOTZ and QQQ have shown significant growth in recent years, following the expansion of the AI sector.
Sector composition and weights
Each ETF has a different composition: some funds are heavily focused on big tech (Google, Microsoft, Nvidia), while others also include emerging AI and robotics companies. It is important to check the sector and geographic breakdown: some AI ETFs are highly exposed to the US market, while others offer global diversification.
Cost (TER - Total Expense Ratio)
The TER (Total Expense Ratio) represents the annual cost of the ETF in relation to the invested capital. Generally, a TER of less than 0.50% is considered affordable, while actively managed ETFs can have costs above 1%. Comparing management costs is essential to maximizing net returns.
Dividends or accumulation?
ETFs can be either dividend-paying (they periodically pay investors the profits generated by the fund's companies) or accumulating (they automatically reinvest the dividends to increase the value of the fund). If the goal is long-term capital growth, an accumulating ETF may be more advantageous, while those seeking passive income may prefer a dividend-paying ETF.
AI ETF Risks and Considerations
While AI ETFs offer great growth potential, it is also important to consider the risks associated with this type of investment.
Volatility in the technology sector
The AI sector is highly innovative and dynamic, but also subject to strong market fluctuations. The shares of AI companies, especially emerging ones, can undergo strong corrections in times of economic uncertainty. AI ETFs, being composed of these companies, are affected by this volatility.
Dependence on big AI companies
Many AI ETFs are heavily focused on tech giants like Nvidia, Microsoft, Alphabet, and Amazon. If these companies suffer a price decline or run into regulatory hurdles, the entire ETF could suffer. Additionally, AI is a competitive and ever-evolving field, which can lead to dramatic changes in market leaders.
Macroeconomic factors: interest rates and regulations
Interest rate policies directly affect the technology sector. A rise in interest rates by central banks can make capital more expensive for AI companies, slowing their growth. In addition, AI is subject to increasingly stringent regulations, especially in terms of data privacy and security, which can impact the profitability of the companies involved.
Alternative: Invest in more diversified ETFs
To reduce risk, one alternative is to invest in broader ETFs that include AI but also other technology sectors. For example, technology ETFs like QQQ or VGT offer exposure to AI, but also to complementary sectors like cloud computing and cybersecurity, mitigating AI-specific volatility.
How to buy AI ETFs?
Investing in AI ETFs is a simple process, but choosing the right platform and adopting an effective strategy can make a difference in long-term returns.
To buy AI ETFs, you need to open an account with a trading platform or online broker.
ETFs generally have lower costs than mutual funds, but it is essential to consider:
● Trading commissions: Some brokers charge fixed commissions for purchasing ETFs.
● TER (Total Expense Ratio): Indicates the annual management cost of the ETF, generally between 0.20% and 0.75%.
● Currency exchange costs: If you invest in American ETFs, there may be a conversion cost from euros to dollars.
Conclusion
AI ETFs are an attractive investment opportunity for those who want to benefit from the growth of the AI sector without exposure to the risk of individual stocks. Thanks to their diversification, low costs and passive management, these funds offer an effective way to invest in the future of technology.
However, it is essential to consider the risks related to market volatility, dependence on big tech and macroeconomic factors. Carefully selecting the best AI ETF based on your investment strategy and management costs can make a difference in the long run.
FAQ
What is the best ETF for investing in artificial intelligence?
There is no absolute “best” ETF, but some of the top performers include BOTZ, IRBO, QQQ, WTAI, and ARKQ, each with different strategies.
Are AI ETFs a Safe Investment?
AI ETFs offer diversification, but the sector is highly volatile. It is important to assess the risk and choose an ETF that aligns with your investment profile.
Is an active or passive AI ETF better?
Passive ETFs have lower costs and track an index, while active ETFs try to outperform the market but have higher management costs.
Where can I buy AI ETFs?
You can buy AI ETFs on online trading platforms, which offer various investment options.
The information provided in this content is for informational purposes only and does not constitute financial, legal or tax advice, nor does it intend to constitute a solicitation for public savings under current legislation. It is recommended to consult a qualified professional before making any investment decisions.
Comments