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Top AI ETFs to Invest In

the best AI ETFs

Investing in artificial intelligence (AI) through exchange-traded funds (ETFs) offers a diversified approach to gaining exposure to this rapidly growing sector. Here are four primary ways to invest in AI using ETFs:

1. AI-Specific Thematic ETFs

These ETFs focus on companies directly involved in the development and utilization of AI technologies. They provide exposure to the entire AI value chain, including developers, hardware providers, and big data analytics firms. Examples include:

  • Global X Artificial Intelligence ETF (ASX: GXAI): This ETF includes companies like Microsoft and Samsung, along with over 80 other AI-related stocks.

2. Industries Powering AI

Investing in industries that support AI, such as semiconductors, robotics, and automation, can provide more concentrated exposure. Examples include:

  • Global X Semiconductor ETF (ASX: SEMI): Focuses on companies that design and build semiconductors, essential for AI data centers and devices.
  • Global X ROBO Global Robotics & Automation ETF (ASX: ROBO): Invests in companies benefiting from the adoption of robotics and AI, such as industrial robots and autonomous vehicles.

3. Mega Cap Companies

Mega cap tech companies have heavily invested in AI and stand to benefit from its advancements. ETFs tracking these companies include:

  • Global X FANG+ ETF (ASX: FANG): Offers exposure to major tech companies like Meta, Netflix, and Amazon, which are significant players in AI development.

4. Broad Index ETFs with a Tech Tilt

These ETFs provide a broader market exposure with a significant portion allocated to technology stocks, indirectly benefiting from AI advancements. Examples include:

  • Global X Morningstar Global Technology ETF (ASX: TECH): Invests in tech companies like Uber, Salesforce, and Adobe, which are integrating AI into their operations.
  • Global X US 100 ETF (ASX: N100): Provides exposure to 100 of the largest non-financial companies in the US, many of which are involved in AI.

Additional Notable AI ETFs

  • Global X Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ): Focuses on robotics and AI companies, with significant assets under management.
  • ROBO Global Robotics and Automation Index ETF (NYSEMKT: ROBO): Another major ETF in the robotics and AI space.
  • iShares Robotics and Artificial Intelligence ETF (NYSEMKT: IRBO): Offers exposure to a broad range of AI and robotics companies.
  • First Trust Nasdaq Artificial Intelligence & Robotics ETF (NASDAQ: ROBT): Tracks companies involved in AI and robotics.

ETF NameTicker SymbolFocus
Global X Artificial Intelligence ETFASX: GXAIAI-specific thematic
Global X Semiconductor ETFASX: SEMIIndustries powering AI
Global X ROBO Global Robotics & Automation ETFASX: ROBOIndustries powering AI
Global X FANG+ ETFASX: FANGMega cap companies
Global X Morningstar Global Technology ETFASX: TECHBroad index with a tech tilt
Global X US 100 ETFASX: N100Broad index with a tech tilt
Global X Robotics & Artificial Intelligence ETFNASDAQ: BOTZAI and robotics
ROBO Global Robotics and Automation Index ETFNYSEMKT: ROBOAI and robotics
iShares Robotics and Artificial Intelligence ETFNYSEMKT: IRBOAI and robotics
First Trust Nasdaq Artificial Intelligence & Robotics ETFNASDAQ: ROBTAI and robotics
Table With The Best AI ETFs Listed

More About AI-Specific Thematic ETFs

Specific Thematic AI ETFs

AI-specific thematic ETFs are designed to provide exposure to companies directly involved in the development and utilization of artificial intelligence (AI) technologies. These ETFs focus on the entire AI value chain, including developers, hardware providers, and big data analytics firms. Here are some examples of AI-specific thematic ETFs:

  1. Global X Artificial Intelligence ETF (ASX: GXAI): This ETF includes companies like Microsoft and Samsung, along with over 80 other AI-related stocks.
  2. ROBO Global Artificial Intelligence ETF (THNQ): Focuses on companies involved in AI development, such as NVIDIA and Alphabet (Google).
  3. QRAFT AI Enhanced U.S. Large Cap ETF (QRFT): Uses AI technology to inform its trading decisions and invests in large-cap U.S. companies.
  4. Neuberger Berman Disrupters ETF (NBDS): Invests in companies that are disrupting traditional industries through AI and other technologies.
  5. iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): Includes companies involved in AI and robotics, such as NVIDIA and Alphabet (Google).

These AI-specific thematic ETFs provide a concentrated exposure to the AI sector, allowing investors to benefit from the growth and innovation in this area.


More About Industries Powering AI

Industries Powering AI ETFs

Industries Powering AI refers to sectors that are crucial to the development and utilization of artificial intelligence (AI) technologies. These industries provide the necessary infrastructure, hardware, and software that enable AI applications to function effectively. Here are some key industries that power AI:

1. Semiconductors

Semiconductors are a fundamental component in the development of AI. They are used in the production of microprocessors, graphics processing units (GPUs), and other specialized chips that are essential for AI processing. Companies like Intel, NVIDIA, and Samsung are major players in the semiconductor industry and provide the necessary hardware for AI applications.

2. Robotics and Automation

Robotics and automation industries are critical for the development of AI-powered robots and machines. These industries provide the necessary hardware and software for AI-powered robots to perform tasks efficiently and accurately. Companies like KUKA, ABB, and FANUC are major players in the robotics and automation industry.

3. Data Storage and Management

Data storage and management are essential for AI applications. Companies like Western Digital, Seagate, and IBM provide the necessary storage solutions for AI data. Additionally, data management companies like Oracle and Microsoft provide the necessary software for managing and analyzing large datasets.

4. Cloud Computing

Cloud computing is a critical infrastructure for AI applications. Cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) provide the necessary computing resources and storage for AI applications. These cloud providers also offer AI-specific services like machine learning and natural language processing.

5. Cybersecurity

Cybersecurity is a critical component of AI development. Companies like Palo Alto Networks, Cyberark, and Check Point provide the necessary security solutions for AI applications. AI-powered cybersecurity solutions can help detect and prevent cyber threats more effectively.

6. Energy and Utilities

Energy and utilities industries are critical for the development of AI applications. Companies like Schneider Electric and Siemens provide the necessary infrastructure for AI-powered energy management systems. AI applications in energy and utilities can help optimize energy consumption, reduce costs, and enhance sustainability.

7. Healthcare and Biotechnology

Healthcare and biotechnology industries are critical for the development of AI applications in medicine. Companies like Philips Healthcare and GE Healthcare provide the necessary medical equipment and software for AI-powered medical applications. AI applications in healthcare can help improve patient outcomes, reduce costs, and enhance medical research.

8. Automotive and Transportation

Automotive and transportation industries are critical for the development of AI applications in autonomous vehicles. Companies like Waymo, Tesla, and NVIDIA provide the necessary hardware and software for AI-powered autonomous vehicles. AI applications in transportation can help improve safety, reduce accidents, and enhance traffic management.

9. Finance and Banking

Finance and banking industries are critical for the development of AI applications in financial services. Companies like Fidelity Investments and JPMorgan Chase provide the necessary software and infrastructure for AI-powered financial applications. AI applications in finance can help improve risk management, reduce costs, and enhance customer service.

10. Education and Research

Education and research industries are critical for the development of AI applications. Companies like Coursera and edX provide the necessary educational resources for AI development. AI applications in education can help improve student outcomes, reduce costs, and enhance research capabilities.

These industries are essential for the development and utilization of AI technologies. They provide the necessary infrastructure, hardware, and software that enable AI applications to function effectively.


More About Mega Cap Companies

Mega Cap Companies in AI

Mega-cap companies are significant players in the artificial intelligence (AI) sector, with substantial investments in AI research and development. These companies have a significant impact on the AI landscape, driving innovation and shaping the future of AI applications. Here are some key mega-cap companies involved in AI:

1. Microsoft (MSFT)

  • Market Cap: $3.21 trillion
  • Headquarters: Redmond, WA, USA
  • Founded: 1975
  • AI Focus: Web search, image generation, and conversational AI

Microsoft has been a leader in AI research and development, with significant investments in AI technologies like OpenAI and Dall-E. Its AI capabilities are integrated into various products, including Bing search and Edge web browsing software.

2. Alphabet (GOOGL)

  • Market Cap: $1.35 trillion
  • Headquarters: Mountain View, CA, USA
  • Founded: 1998
  • AI Focus: Search, advertising, and machine learning

Alphabet, the parent company of Google, has been a pioneer in AI research and development. Its AI capabilities are integrated into various products, including Google Search, Google Assistant, and Google Cloud.

3. Amazon (AMZN)

  • Market Cap: $1.23 trillion
  • Headquarters: Seattle, WA, USA
  • Founded: 1994
  • AI Focus: E-commerce, cloud computing, and machine learning

Amazon has been a significant player in AI research and development, with significant investments in AI technologies like Alexa and SageMaker. Its AI capabilities are integrated into various products, including Amazon Web Services (AWS) and Amazon Echo.

4. Nvidia (NVDA)

  • Market Cap: $1.09 trillion
  • Headquarters: Santa Clara, CA, USA
  • Founded: 1993
  • AI Focus: High-performance computing and AI chip development

Nvidia is a leading provider of high-performance computing and AI chip development. Its AI capabilities are integrated into various products, including data centers, autonomous vehicles, and gaming consoles.

5. Meta Platforms (META)

  • Market Cap: $1.03 trillion
  • Headquarters: Menlo Park, CA, USA
  • Founded: 2004
  • AI Focus: Social media, advertising, and machine learning

Meta Platforms, the owner of Facebook, Instagram, and other platforms, has been a significant player in AI research and development. Its AI capabilities are integrated into various products, including Facebook and Instagram, to enhance user engagement and advertising.

These mega-cap companies have significant investments in AI research and development, driving innovation and shaping the future of AI applications.


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More About Broad Index ETFs with a Tech Tilt

Broad Index ETFs with a Tech Tilt

Broad Index ETFs with a Tech Tilt are exchange-traded funds (ETFs) that track a broad market index but have a significant allocation to technology stocks. These ETFs provide exposure to the overall market while also benefiting from the growth potential of the technology sector. Here are some examples of broad index ETFs with a tech tilt:

1. Fidelity MSCI Information Technology Index ETF (FTEC)

  • Market Cap: $1.3 billion
  • Expense Ratio: 0.04%
  • Holdings: Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), and NVIDIA (NVDA)

FTEC tracks the MSCI US Investable Market Information Technology 25/50 Index, which includes large, mid, and small-cap technology companies. It has a significant allocation to the top technology stocks, making it a good option for those looking for broad exposure to the tech sector.

2. iShares U.S. Technology ETF (IYW)

  • Market Cap: $1.1 billion
  • Expense Ratio: 0.46%
  • Holdings: Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), and NVIDIA (NVDA)

IYW tracks the Dow Jones U.S. Technology Index, which includes large-cap technology companies. It has a significant allocation to the top technology stocks and provides broad exposure to the tech sector.

3. Vanguard Information Technology ETF (VIT)

  • Market Cap: $1.1 billion
  • Expense Ratio: 0.10%
  • Holdings: Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), and NVIDIA (NVDA)

VIT tracks the MSCI US Investable Market Information Technology 25/50 Index, which includes large, mid, and small-cap technology companies. It has a significant allocation to the top technology stocks and provides broad exposure to the tech sector.

4. Invesco QQQ ETF (QQQ)

  • Market Cap: $1.1 billion
  • Expense Ratio: 0.20%
  • Holdings: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and NVIDIA (NVDA)

QQQ tracks the Nasdaq-100 Index, which includes the 100 largest and most actively traded non-financial stocks listed on the Nasdaq stock market. It has a significant allocation to the top technology stocks and provides broad exposure to the tech sector.

These broad index ETFs with a tech tilt offer a diversified portfolio of technology stocks while also providing exposure to the overall market. They are suitable for investors looking to gain exposure to the technology sector without having to pick individual stocks.


Video About Top 3 AI ETFs for 2024

video thumbnail about top 3 AI ETFs for 2024

FAQ

Q: What is an AI ETF? A: An AI ETF is an exchange-traded fund that invests in companies involved in the development and utilization of artificial intelligence technologies.

Q: Why should I invest in AI ETFs? A: AI ETFs offer diversified exposure to the rapidly growing AI sector, allowing investors to benefit from advancements in technology without picking individual stocks.

Q: What are some examples of AI-specific thematic ETFs? A: Examples include the Global X Artificial Intelligence ETF (ASX: GXAI), ROBO Global Artificial Intelligence ETF (THNQ), and QRAFT AI Enhanced U.S. Large Cap ETF (QRFT).

Q: How do industries powering AI ETFs differ from AI-specific ETFs? A: Industries powering AI ETFs focus on sectors that provide the necessary infrastructure, hardware, and software for AI applications, such as semiconductors, robotics, and cloud computing.

Q: What are some mega cap companies involved in AI? A: Major players include Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), and Meta Platforms (META).

Q: Can broad index ETFs with a tech tilt provide exposure to AI? A: Yes, broad index ETFs with a tech tilt, such as Fidelity MSCI Information Technology Index ETF (FTEC) and Invesco QQQ ETF (QQQ), provide exposure to the tech sector, indirectly benefiting from AI advancements.

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Sources: smsfadviserglobalxetfsjustetffoolnerdwallet

DISCLAIMER: All content on financenumber are informational and should not be taken as professional financial advice.

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