Best AI ETFs to Watch in 2025

• Expense Ratio: 0.68%
• Top Holdings: Nvidia, Intuitive Surgical, ABB
• Why Consider It? BOTZ offers a diversified portfolio of companies at the forefront of AI and robotics innovation. It provides exposure to industries like healthcare, industrial automation, and autonomous vehicles.

• Expense Ratio: 0.47%
• Top Holdings: Broadcom, Vertiv Holdings, Arista
• Why Consider It? IRBO’s equal-weighted structure ensures a balanced approach, giving smaller players in the AI space an opportunity to shine alongside big tech giants. This balance reduces over-reliance on a few dominant companies.

• Expense Ratio: 0.75%
• Top Holdings: Tesla, Teradyne, Kratos Defense & Security Solutions
• Why Consider It? ARKQ focuses on companies expected to benefit significantly from innovation in products, services, and technological advancements, as well as progress in scientific research. These companies are engaged in areas such as energy, automation, manufacturing, materials, artificial intelligence, and transportation.

• Expense Ratio: 0.45%
• Top Holdings: Broadcom Inc, Marvell Technology, Tesla Inc
• Why Consider It? WTAI targets companies leveraging AI for innovation across various industries. It’s a versatile pick for investors looking for exposure to both software solutions and cloud computing advancements.

• Expense Ratio: 0.95%
• Top Holdings: Harmonic Drive Systems, Fanuc Corp., Intuitive Surgical
• Why Consider It? ROBO emphasizes both established leaders and emerging players in the robotics and AI ecosystems including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.

• Expense Ratio: 0.75%
• Top Holdings: NVIDIA, Alphabet Inc, Microsoft Corp
• Why Consider It? CHAT is specifically designed to capture the growing generative AI market, including companies developing AI-driven content creation tools and large language models. The fund targets global companies poised to benefit from the expansion of generative AI, a subset of the broader AI industry that leverages generative adversarial networks (GANs) to create original content in response to user inputs.

Discover the capabilities of InvestingPro for evaluating AI ETFs. Access in-depth analysis of AI ETFs, easily compare expense ratios, 1-year, and 5-year returns:

AI ETFs can be a smart addition to your portfolio, especially if you:

• Believe in the Future of AI: With applications in healthcare, finance, automotive, and more, AI’s growth trajectory is hard to ignore. The sector’s potential for disruption and innovation provides a compelling case for investment.
• Prefer Diversification: Instead of betting on a single stock, AI ETFs spread your risk across multiple companies. This diversification can provide exposure to both market leaders and smaller, emerging innovators.
• Seek Long-Term Growth: AI is a rapidly evolving field, and ETFs provide exposure to companies driving innovation over the next decade. Investing in AI ETFs aligns with a forward-looking growth strategy.
• Want Exposure to Cutting-Edge Technology: AI ETFs offer an entry point into the forefront of technological advancements, from autonomous vehicles to generative AI.

However, keep in mind:

• Volatility Risks: Many AI companies are in growth phases and can be subject to significant market swings.
• Sector-Specific Focus: AI ETFs are heavily tech-focused, which might not provide the same level of stability as more diversified funds.

• Look for ETFs with a mix of established companies like Nvidia or Alphabet and emerging players in AI. Consider funds with exposure to both hardware (e.g., chipmakers) and software (e.g., AI platforms).

• Lower expense ratios mean more of your money stays invested. Compare costs across different AI ETFs, balancing fees with fund performance. Use InvestingPro to assess and compare expense ratios.

3. Review Performance and Liquidity

• Historical performance isn’t a guarantee of future returns, but it provides insights into how the ETF reacts to market conditions. Ensure the ETF has sufficient trading volume for easy buying and selling. Within InvestingPro you can find and compare the performance across ETF benchmarks.

• Some ETFs focus on AI hardware, while others emphasize software or specific applications like autonomous vehicles or generative AI. Choose one that aligns with your investment thesis and risk tolerance.

An AI ETF is a type of exchange-traded fund that invests in companies developing or utilizing artificial intelligence technologies. These funds provide exposure to a basket of AI-related stocks, including sectors like robotics, cloud computing, and generative AI.

AI ETFs can be more volatile due to their focus on technology and innovation sectors. It’s important to assess your risk tolerance and consider a diversified portfolio. Be prepared for short-term fluctuations in exchange for potential long-term gains.

While tech ETFs invest broadly in technology companies, AI ETFs specifically target firms involved in AI development, implementation, and related technologies. This makes AI ETFs more niche but potentially more rewarding for those focused on the AI space.

Yes, most AI ETFs are available through retirement accounts like IRAs or 401(k)s, allowing you to invest tax-advantaged. This can be an efficient way to gain exposure to AI while saving for the future.

Your allocation depends on your investment goals, risk tolerance, and portfolio strategy. AI ETFs are growth-focused and may be suitable for a smaller, more aggressive portion of your portfolio.

AI ETFs provide exposure to industries such as healthcare, autonomous vehicles, financial technology (fintech), cloud computing, and industrial automation. These sectors are poised to benefit significantly from advancements in AI.

AI is reshaping the future, and investing in AI ETFs can position you to benefit from this transformative trend. By researching your options and aligning them with your financial goals, you can make informed decisions for long-term growth.