11 Best AI ETFs of All Time

Ever since the release of ChatGPT in November of 2022, the subject of AI has maintained a constant buzz. With a global market prediction of $15.7 trillion by 2030, people are realizing there is a lot to be made. Cue in AI ETFs. What better way to capitalize and profit from the rapidly expanding sector than AI ETFs? 

Even though AI ETFs are an effective way to escape the hassle and risk of purchasing individual AI company stocks, the new challenge then becomes choosing the best AI ETFs to add to a portfolio. 

While a quick search would generate a long list, our focus (and money) is on the best-performing AI ETFs. In this article, you will find a carefully curated list of the best-performing AI ETFs that you should acquire in 2025. 

But first, let’s clear the air. What exactly are AI ETFs and why invest in them?

What Are AI ETFs?

AI ETFs, or AI Exchange-Traded Funds, are a type of investment fund that holds a collection of assets like stocks, bonds, or commodities. They are traded on stock exchanges, much like individual stocks. 

The difference is that by investing in an ETF, a shareholder owns a portion of all the assets the ETF holds, giving a diversified portfolio with a single purchase. 

Why Invest in AI ETFs?

Investing in AI ETFs allows investors to gain exposure to the rapidly growing artificial intelligence industry without having to pick individual companies. AI is transforming various sectors, including healthcare, finance, and technology, with increasing demand for automation, machine learning, and data-driven solutions. 

By investing in AI ETFs, shareholders can benefit from the potential growth of a diversified set of companies leading AI innovation, while spreading the risk across multiple businesses. 

Additionally, AI is expected to have long-term, transformative impacts, making it an attractive option for future-oriented investors looking to capitalize on technological advancements.

Now that is settled, here are our picks;

Best AI ETFs for 2025 

1. Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ)

2. iShares Exponential Technologies ETF (XT)

3. Global X Artificial Intelligence & Technology ETF (AIQ)

4. SPDR S&P Kensho New Economies Composite ETF (KOMP)

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

6. First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)

7. ROBO Global Artificial Intelligence ETF (THNQ)

8. Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares (UBOT)

9. WisdomTree Artificial Intelligence & Innovation Fund (WTAI)

10. ARK Autonomous Technology & Robotics ETF (ARKQ)

11. First Trust Cloud Computing ETF (SKYY)

1. Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ)

 

Description: BOTZ focuses on companies heavily involved in the development and application of AI, robotics, and automation.

Performance history: As of October 2024, the Global X Robotics & Artificial Intelligence ETF (BOTZ) has demonstrated strong performance, with a year-to-date (YTD) return of 13.2% and a one-year return of 30.5%. Over the longer term, its three-year performance shows a negative return of -4.7%, but its five-year annualized return is 9.8%, indicating a recovery in recent years.

Assets under Management: As of 2024, the BOTZ ETF has assets under management (AUM) of approximately $2.12 billion. This is a significant amount, indicating strong investor interest and confidence in the fund’s focus on robotics and artificial intelligence

Expense ratio: has an expense ratio of 0.68%, which means that for every $1,000 you invest, you’ll pay $6.80 annually in management fees.

Dividend yield: The current dividend yield for the BOTZ ETF is 0.15%, based on its most recent dividend payout. The last dividend payment was $0.047 per share, with an ex-dividend date of June 27, 2024.

Volatility: 29.9%

Liquidity: The BOTZ ETF generally offers good liquidity, which is important for investors looking to easily buy or sell shares. Its daily trading volume tends to be high, meaning there are plenty of buyers and sellers in the market, allowing for smooth transactions. Additionally, the ETF has a relatively tight bid-ask spread, which minimizes the cost of trading.

2. iShares Exponential Technologies ETF (XT)

Description: Although not exclusively focused on AI, XT invests in companies that leverage exponential technologies, including AI, robotics, and biotech.

Performance history: As of September 30, 2024, XT ETF has achieved a total return of 17.45% over the past year, which is slightly below its benchmark return of 17.90%. Over three years, the XT ETF has returned an average of -0.27%, indicating a period of volatility or stagnation compared to the benchmark’s 0.11% return. However, it has performed notably well over a longer period, with a five-year return of 10.41%​

Assets under management: $3.3 billion

Expense ratio: 0.32%

Dividend yield: As of September 2024, the trailing 12-month dividend yield is 0.43%

Volatility: The fund’s three-year standard deviation is 21.8%, showing moderate fluctuations.

Liquidity: The fund has moderate liquidity with a 1-day trading volume of around 74,511 shares as of October 2024, making it reasonably easy to buy or sell shares​. 

3. Global X Artificial Intelligence & Technology ETF (AIQ)

Description: AIQ holds a globally diversified basket of AI and big data companies. It is dedicated to companies actively using and developing AI technologies, both in software and hardware applications. 

Performance history: The fund has performed well, with a one-year return of over 37%. This impressive performance is largely driven by increased investments in AI and big data companies, as these sectors continue to expand.

Assets Under Management (AUM): AIQ manages over $2 billion in assets.

Expense Ratio: AIQ has an expense ratio of 0.68%, which is relatively typical for a specialized thematic ETF​.

Dividend Yield: The ETF has a low dividend yield of 0.17%, because it primarily focuses on growth companies rather than income generation.

Volatility: It has a standard deviation of 2.79%

Liquidity: The average spread for AIQ is around 3.07%, which is relatively high, indicating that trading costs might be higher compared to more liquid ETFs. 

4. SPDR S&P Kensho New Economies Composite ETF (KOMP)

Description: KOMP includes companies working in AI, robotics, biotech, and automation. It focuses on emerging technologies.

Performance history: This AI ETF  has delivered a year-to-date (YTD) return of around 6.25%, and over the past year, it returned approximately 26%, though its 3- and 5-year performances have shown some volatility, with an average return of about 9.7%.

Assets under management: As of October 2024, KOMP manages assets worth approximately $2 billion.

Expense ratio: 0.20%, making it relatively affordable for investors. 

Dividend yield: This stands at around 1.17%, with annual payouts of $0.58 per share.  

Volatility: 1.20% ​

Liquidity: An average daily trading volume of approximately 134,000 shares.​

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

Description: This ETF invests in leading U.S. tech companies, many of which are heavily involved in AI, including Apple, Microsoft, and Alphabet.

Performance history: IYW boasts a 3-year return of 14.05% and a 5-year return of 25.31%. 

Assets under Management: $19.21 billion in assets

Expense ratio: This is set at 0.39%, which is considered relatively low, allowing investors to keep more of their returns

Dividend yield: This stands at 0.33% over the trailing 12 months

Volatility: IYW has a 3-year standard deviation of 24.59%, reflecting significant price fluctuations.

Liquidity: This is highly liquid with an average daily trading volume of over 652,000 shares, ensuring ease of buying and selling

6. First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)

Description: This ETF is based on the Nasdaq CTA Artificial Intelligence and Robotics Index, offering exposure to companies in AI, robotics, and automation sectors.

Assets under Management: Approximately $451.94 million as of October 2024​.

Expense Ratio: This AI ETF’s expense ratio is 0.65%, slightly above the average cost for thematic ETFs​.

Dividend Yield: 0.26%​

Performance: As of September 2024, the fund’s YTD performance stands at -3.46% with a 3-year return of -6.07% and a 5-year return of 7.05%​

Volatility: ROBT has a 200-day volatility of 22.62% and a beta of 1.22, suggesting it experiences more significant price swings compared to the market​.

Liquidity: The ETF sees average daily trading volumes of around 63,358 shares, indicating decent liquidity for investors. 

7. ROBO Global Artificial Intelligence ETF (THNQ)

Description: This ETF focuses on companies with cutting-edge developments in AI, including areas like cloud computing, data analytics, and machine learning.

Performance History: THNQ delivered a strong 1-year return of 37.02%.

Assets under Management (AUM): As of recent reports, THNQ’s assets under management fluctuated, with a 1-year net AUM change of $63.33 million. ​

Expense Ratio: The fund has an expense ratio of 0.68%.

Dividend Yield: THNQ does not currently pay a dividend. ​

Volatility: With a beta of 1.25, THNQ shows higher volatility than the broader market, indicating it may experience larger price swings​.

Liquidity: The fund’s liquidity, though decent, isn’t as robust as larger funds, with a recent trading volume of 5,904 shares.

8. Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares (UBOT)

Description: UBOT is a 2x leveraged ETF that tracks the same index as BOTZ but with added volatility and potential for amplified gains.

Performance History: As of October 2024, UBOT has experienced a 1-year return of +47.51%.

Assets Under Management (AUM): As of September 30, 2024​, the AI fund manages approximately $31.44 million in assets.

Expense Ratio: The net expense ratio is relatively high at 1.38%, reflecting the cost of managing this leveraged fund​. 

Dividend Yield: The fund declared a quarterly distribution of $0.0432 in September 2023​.

Volatility: UBOT is a highly volatile ETF due to its leveraged nature, which means it can experience large swings in both directions based on the daily performance of its underlying index.

Liquidity: It has a relatively low trading volume, with 5.94K shares traded recently, indicating moderate liquidity for retail investors. 

9. WisdomTree Artificial Intelligence & Innovation Fund (WTAI)

Description: WTAI is focused on AI innovation and the companies driving advancements in machine learning, data processing, and AI services.

Performance History: Over the past year, WTAI has achieved a 1-year return of 15.54% as of October 2024​. 

Assets under Management: As of September 2024, WTAI boasts $196.83 million in assets. 

Expense Ratio: WTAI has a 0.45% expense ratio. 

Dividend Yield: The fund’s dividend yield is 0.24%, with an annual dividend of approximately $0.05​. 

Volatility: WTAI exhibits volatility typical of tech ETFs, though specific metrics like standard deviation or beta are not readily available in recent data. The high growth focus indicates higher market risk.

Liquidity: WTAI has decent liquidity, with around 16,000 shares traded daily, ensuring that investors can enter and exit positions without significant issues.

10. ARK Autonomous Technology & Robotics ETF (ARKQ)

Description: ARKQ is an actively managed fund that invests in autonomous technology, robotics, and AI-driven innovations. It is managed by ARK Invest, known for its futuristic investment themes.

Performance history: It has shown volatility in its performance, with strong returns in some years, such as 2020 when it gained over 100%, but also faced significant declines, like in 2022 when it dropped by around 46%. Year-to-date (YTD) as of October 2024, it has a return of approximately 5.94%​.

Assets under management (AUM): As of October 2024, ARKQ has $1.32 billion in assets under management​

Expense ratio: ARKQ has an expense ratio of 0.75%, which is relatively higher.

Dividend yield: The fund’s dividend yield is relatively low, at 0.20%​.

Volatility: This ETF is quite volatile due to its focus on emerging and disruptive technologies. It has faced large drawdowns, especially during market downturns, which underscores its higher risk profile​.

Liquidity: ARKQ has a good level of liquidity with a 30-day average trading volume of around 131,000 shares, making it relatively easy to trade​. 

11. First Trust Cloud Computing ETF (SKYY)

Description: SKYY focuses on companies involved in cloud computing, which is closely tied to AI development, as AI relies heavily on cloud infrastructure for data processing and storage.

Performance History: Year-to-date (YTD) return is approximately 23.04%, and it has had an average annual return of around 24.25% over the past three years​.

Assets Under Management (AUM): The fund manages approximately $1.08 billion​.

Expense Ratio: 0.60%​

Dividend Yield: The dividend yield is about 0.52%​.

Volatility: This AI ETF has an annualized volatility of 21.8%, which reflects its price fluctuations over time compared to the overall market. 

Liquidity: SKYY has received an “A” liquidity rating, indicating strong liquidity characteristics.

How to Choose the Best AI ETF Funds for You

Whether you are financially unable to acquire all top-performing ETFs or simply desire to concentrate your stock efforts within a short AI ETF list, here are the most important things to consider before you acquire your first ETF stock; 

1. Performance History

This is one of the first factors to evaluate. Although past performance doesn’t guarantee future success, it offers a basis for nearly accurate future predictions. It gives insight into the fund’s response to market changes, particularly periods of volatility. 

For instance, top-performing AI ETFs like Global X Robotics & Artificial Intelligence ETF (BOTZ) and Direxion Daily Robotics, AI & Automation Index Bull 2X Shares (UBOT) have shown consistent returns due to their exposure to the most innovative companies in the AI, robotics, and automation sectors. 

You should look at both the short-term and long-term performance, comparing it against benchmarks and peer AI ETF stocks to gauge consistency. 

2. Industry Exposure

AI ETFs often differ in the sectors they cover. For instance, iShares U.S. Technology ETF (IYW) focuses on large-cap tech companies such as Microsoft and Alphabet, which are at the forefront of AI innovations. 

Other AI ETF funds, like ROBO Global Artificial Intelligence ETF (THNQ), may focus on smaller, disruptive companies in cloud computing and data analytics. You should assess the industries within the ETF’s portfolio and ensure these sectors align with their investment objectives. 

Diversification across industries like automation, robotics, and big data can mitigate risk while ensuring exposure to multiple avenues. 

3. Cost and Expense Ratios

Expense ratios are a key consideration when selecting any ETF, including AI-focused ones. A fund’s expense ratio is the fees paid to the fund manager for operational costs, and these can significantly impact returns over time. 

Compare expense ratios among AI ETFs, favoring funds with lower costs, provided they also meet performance and diversification criteria. SPDR S&P Kensho New Economies Composite ETF (KOMP) is known for its lower expense ratio while still offering diversified exposure to AI and emerging technologies. 

4. Management Strategy

Another important thing to note is whether the ETF is actively or passively managed. Actively managed funds select stocks based on their potential for AI advancements, while passively managed funds track AI-related indexes. 

Active funds might provide greater upside in a rapidly changing sector like AI, but they come with higher fees. Passive funds, on the other hand, tend to have lower costs and more predictable outcomes due to their relative stability. 

5. Your Risk Tolerance and Investment Horizon

AI ETFs can be volatile, especially those that are leveraged, like UBOT, which aims to double the daily returns of its underlying index. If you have a higher risk tolerance and a shorter investment horizon, you may opt for such funds, but if you’re more interested in long-term investing, a more stable, diversified AI ETF may be a better choice. 

The Bottom Line

One of the key drivers of the long-term growth potential for AI ETFs is the increasing adoption of AI technologies across industries. AI is no longer limited to tech giants like Google and Microsoft but is now becoming integral to sectors such as healthcare, logistics, energy, and even agriculture. 

AI has permeated into biotech, predictive analytics, and supply chain optimization. This diversification of AI applications has made it a large market, making AI ETF stocks a favorable long-term investment for the everyday person.