Artificial intelligence (AI) has evolved from a futuristic concept into a core driver of innovation across industries—from healthcare and finance to manufacturing and consumer technology. For investors seeking broad exposure to this transformative sector, AI exchange-traded funds (ETFs) offer a strategic and diversified alternative to betting on individual stocks.
Rather than putting capital into a single company like NVIDIA or Alphabet, AI ETFs allow investors to gain access to a basket of firms at the forefront of AI development, including those involved in machine learning, robotics, big data analytics, and next-generation software. This approach helps manage risk while capturing growth potential across the AI ecosystem.
The global AI market is projected to surpass $1.34 trillion by 2030, growing at a compound annual rate of 35.7% from 2024 to 2030, according to MarketsandMarkets. With such explosive expansion on the horizon, now is a pivotal time to explore top-performing AI ETFs that align with long-term investment goals.
ETFdb.com identifies qualifying AI ETFs based on three key criteria:
- Focus on companies developing AI-related products, services, or technological improvements.
- Maintain at least 25% portfolio exposure to firms actively investing in AI research and development.
- Select securities based on the extent of AI methodology integration within their operations.
Below are the five largest AI ETFs by assets under management as of early 2025, offering investors diversified entry points into one of the most dynamic sectors of the digital economy.
1. Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ)
Assets Under Management: $3.31 billion
Expense Ratio: 0.68%
Launch Date: May 2018
The Global X Artificial Intelligence & Technology ETF tracks the Indxx Artificial Intelligence & Big Data Index, providing exposure to global companies leveraging AI for big data analysis—whether internally, as a service, or through hardware production.
As a passively managed fund, AIQ maintains a balanced mix of established tech giants and emerging innovators. Its portfolio includes major players such as Tencent Holdings and Alibaba Group, both leaders in AI-driven cloud computing, e-commerce personalization, and natural language processing.
With 171 holdings, the ETF spans developed markets and emphasizes firms where AI is central to business operations or service offerings. This makes it ideal for investors looking for comprehensive exposure to the foundational layers of AI infrastructure.
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2. Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ: BOTZ)
Assets Under Management: $2.88 billion
Expense Ratio: 0.68%
Launch Date: September 2016
BOTZ focuses on companies driving innovation in robotics and automation, two fields deeply intertwined with artificial intelligence. To qualify for inclusion, firms must generate significant revenue from or have a stated business focus in robotics or AI applications.
This ETF covers a diverse range of industries, including technology, healthcare, energy, and industrial automation. Notable holdings include:
- Intuitive Surgical (ISRG) – a pioneer in robotic-assisted surgical systems.
- NVIDIA (NVDA) – a dominant force in AI chips and GPU computing.
With 92 holdings, BOTZ offers concentrated exposure to companies commercializing intelligent machines and automated solutions—key beneficiaries of rising demand for efficiency and precision in complex environments.
Its early launch date gives it one of the longest track records among thematic AI ETFs, making it a go-to choice for investors focused on real-world AI implementation.
3. Defiance Quantum ETF (NASDAQ: QTUM)
Assets Under Management: $1.17 billion
Expense Ratio: 0.40%
Launch Date: September 2018
The Defiance Quantum ETF stands out for its unique focus on quantum computing and machine learning technologies. It tracks an index composed of 144 companies that derive at least half of their annual revenue from quantum computing or advanced machine learning R&D.
While quantum computing remains in its commercial infancy, its synergy with AI—particularly in solving complex optimization problems—positions QTUM as a forward-looking bet on the next frontier of computational power.
Top holdings include Alibaba Group and D-Wave Quantum (QBTS), a pure-play quantum computing firm. The fund’s low expense ratio of just 0.4% enhances its appeal for cost-conscious investors seeking exposure to cutting-edge tech.
QTUM blends speculative growth potential with strategic diversification, making it suitable for those with a medium- to long-term horizon who believe in the convergence of quantum mechanics and artificial intelligence.
4. Invesco AI and Next Gen Software ETF (ARCA: IGPT)
Assets Under Management: $459 million
Expense Ratio: 0.58%
Launch Date: June 2005
Despite being the smallest on this list by AUM, IGPT holds the distinction of being the longest-running fund repurposed for AI investing. Originally launched over two decades ago, it now tracks the STOXX World AC NexGen Software Development Index, focusing on companies generating direct revenue from next-gen software technologies—including AI, machine learning, and cloud-native development.
Its portfolio of 101 holdings features tech titans like:
- Alphabet (GOOGL) – leveraging AI across search, advertising, and autonomous vehicles.
- Qualcomm (QCOM) – integrating AI into mobile processors and edge computing devices.
IGPT is particularly attractive for investors who want exposure not just to AI applications but also to the underlying software infrastructure enabling scalable AI deployment across devices and platforms.
Frequently Asked Questions (FAQ)
Q: What exactly does an AI ETF invest in?
A: An AI ETF typically invests in companies involved in artificial intelligence research, development, or application—such as machine learning, robotics, big data analytics, natural language processing, and autonomous systems.
Q: Are AI ETFs risky compared to traditional index funds?
A: Yes, AI ETFs are generally more volatile due to their concentration in a fast-evolving tech sector. However, they offer higher growth potential and diversification within the theme, reducing single-stock risk compared to buying individual tech shares.
Q: How do I choose the best AI ETF?
A: Consider factors like assets under management (liquidity), expense ratio, portfolio diversification, geographic exposure, and alignment with your investment goals—whether broad AI infrastructure or niche areas like robotics or quantum computing.
Q: Can I invest in international AI companies through these ETFs?
A: Yes, many AI ETFs include global holdings. For example, both AIQ and IGPT feature major Asian tech firms like Tencent and Alibaba, giving investors exposure beyond U.S.-based companies.
Q: Do any of these ETFs pay dividends?
A: While most focus on growth rather than income, some holdings within these ETFs—like Qualcomm or certain Japanese robotics firms—do pay dividends, providing modest yield potential.
AI is no longer just a buzzword—it's reshaping economies and redefining competitive advantage across industries. By investing in well-structured AI ETFs, individuals can participate in this revolution without needing to pick winners in a highly technical and rapidly shifting landscape.
Whether you're drawn to foundational technologies (AIQ), real-world automation (BOTZ), futuristic quantum systems (QTUM), or next-gen software platforms (IGPT), there’s an ETF tailored to match your vision of the future.
As always, conduct thorough research and consider consulting a financial advisor before making investment decisions. With strong fundamentals and sustained innovation driving demand, the case for including AI ETFs in growth-oriented portfolios has never been stronger.