The rapid emergence of artificial intelligence (AI) exchange-traded funds (ETFs) reflects the growing interest in the AI sector as it becomes a leading investment arena. Fund owners and managers are keen to capitalize on this trend, driving the creation of numerous AI-focused ETFs. With various options saturating the market, identifying the most promising investments requires careful evaluation.
In compiling a list of notable AI ETFs, I focused on those that explicitly included “AI” or “artificial intelligence” in their names. Additionally, I included the VanEck Semiconductor ETF (NASDAQ: SMH) despite its lack of direct reference to AI. This ETF merits inclusion due to its significant role in the AI ecosystem, as semiconductors are fundamental to AI technology.
To ensure my list remains relevant, I excluded three ETFs with total assets under management (AUM) of less than $200 million—indicative of a relatively nascent fund. Although my list may not be exhaustive, it aims to provide a comprehensive overview.
The accompanying chart illustrates year-to-date returns for ten AI-focused ETFs, all boasting AUM exceeding $200 million. Notably, many of these ETFs significantly surpass this threshold. The five best performers so far in 2025 include:
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- VanEck Semiconductor ETF
- WisdomTree Artificial Intelligence and Innovation Fund (NYSEMKT: WTAI)
- ROBO Global Artificial Intelligence ETF (NYSEMKT: THNQ)
- Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ)
While it’s encouraging to see strong performance from these funds in 2025, discerning long-term viability is equally important for investors. A deeper look at the performance of the five highlighted ETFs over extended periods reveals the following returns:
| AI-Focused ETF | 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|---|
| Roundhill Generative AI & Technology ETF | 51.9% | N/A | N/A |
| VanEck Semiconductor ETF | 39.6% | 222% | 264% |
| WisdomTree Artificial Intelligence and Innovation Fund | 39.2% | 90.7% | N/A |
| ROBO Global Artificial Intelligence ETF | 31.4% | 131% | 81.3% |
| Global X Artificial Intelligence & Technology ETF | 30.9% | 141% | 103% |
| S&P 500 Index | 14.7% | 77.8% | 102% |
Investors may find the VanEck Semiconductor ETF particularly appealing due to its robust long-term performance metrics. However, the recent surge of the Roundhill Generative AI & Technology ETF is also noteworthy, indicating strong interest in generative AI.
Overview of Key ETFs
Delving into specific ETFs, the VanEck Semiconductor ETF was launched in 2011 and tracks an index comprising companies involved in the semiconductor value chain. With 25 holdings and a relatively low expense ratio of 0.35%, it offers a cost-effective way to gain exposure to this critical industry. Notable holdings include:
| Holding No. | Company | Market Cap | Projected Annualized EPS Growth (Next 5 Years) | Weight (% of Portfolio) | 3-Year Return |
|---|---|---|---|---|---|
| 1 | Nvidia (NASDAQ: NVDA) | $4.6 trillion | 41.4% | 18.30% | 1,070% |
| 2 | Taiwan Semiconductor Manufacturing (NYSE: TSM) | $1.4 trillion | 30.2% | 9.41% | 311% |
| 3 | Broadcom (NASDAQ: AVGO) | $1.6 trillion | 35.7% | 7.98% | 602% |
| 4 | Advanced Micro Devices (NASDAQ: AMD) | $402 billion | 44% | 6.75% | 236% |
| 5 | Micron Technology (NASDAQ: MU) | $277 billion | 37.1% | 6.61% | 306% |
The ETF’s holdings predominantly consist of chipmakers, with Nvidia and AMD leading the pack. Their GPUs are essential for the AI infrastructure, while Broadcom focuses on custom AI chips. Micron, specializing in memory chips, is also experiencing a surge in demand driven by AI applications.
Conversely, the Roundhill Generative AI & Technology ETF, launched in May 2023, is actively managed and targets companies engaged in generative AI, a sector that has gained prominence since the introduction of ChatGPT by OpenAI in late 2022. Currently, it holds 44 positions with an expense ratio of 0.75%, reflecting the higher management costs associated with active funds. Key holdings include:
| Holding No. | Company | Market Cap | Projected Annualized EPS Growth (Next 5 Years) | Weight (% of Portfolio) | 3-Year Return |
|---|---|---|---|---|---|
| 1 | Nvidia | $4.6 trillion | 41.4% | 6.90% | 1,070% |
| 2 | Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) | $3.3 trillion | 16.7% | 6.55% | 191% |
| 3 | SK Hynix | Approximately $309 billion | N/A | 4.28% | 534%* |
| 4 | Microsoft (NASDAQ: MSFT) | $3.8 trillion | 17.8% | 3.95% | 117% |
| 5 | Advanced Micro Devices (AMD) | $402 billion | 44% | 3.89% | 236% |
Both NVIDIA and AMD remain prominent in this ETF, alongside tech giants like Microsoft and Alphabet, which are significantly involved in generative AI development. This ETF capitalizes on the increasing demand for companies at the forefront of AI innovation.
Deciding where to allocate funds in AI ETFs can be challenging, yet the performance of these two ETFs provides valuable insights into the market dynamics and potential growth in a rapidly evolving sector.
