Top AI ETFs to Invest In: 2026 Guide

Artificial intelligence is rapidly becoming one of the most transformative forces in the global economy. From generative AI tools to robotics and automation, breakthroughs in AI are reshaping industries and driving innovation. For investors, this momentum has generated a new investment opportunity: AI exchange-traded funds, or ETFs.

Artificial intelligence ETFs allow investors to gain relatively low-cost, diversified exposure to the rapidly expanding AI sector, spreading risk across a wide range of companies, while tapping into the potential of a technology that’s just beginning to scale.

AI investments also come with risks to be aware of, such as the potential for higher volatility. In this quarterly AI ETF guide, we’ll identify some of the top AI ETFs by assets under management (AUM), along with considerations when investing in AI.

What Is an AI ETF?

The term AI ETF refers to an exchange-traded fund (ETF) that focuses on companies that in some way participate in the artificial intelligence sector.

It’s important to understand how ETF investments work, as these funds differ from mutual funds and stocks in key ways. As with other types of ETFs, AI ETFs hold multiple assets in one fund, typically including the stocks of companies involved in AI development, AI-powered products, and AI infrastructure.

When considering ETFs vs. mutual funds, ETFs may be lower cost and more liquid, with potential tax efficiencies.

An AI ETF may also refer to an ETF that uses artificial intelligence to help pick the stocks that it invests in, though this definition is less common.

Types of AI ETFs to Consider

ETFs that are built around artificial intelligence stocks are not all the same. Here are some differences to be aware of.

Passive vs. Active ETFs: The far majority of ETF assets are in passively managed funds that track a certain index, such as the S&P 500. However, the number of actively managed ETFs has sharply risen in recent years, and is now roughly equivalent to the number of passive funds. According to one study, actively managed ETFs outnumbered passively managed ones in 2025.

Unlike passively managed funds, actively managed funds are managed by a portfolio manager who continuously adjusts investments to attempt to outperform an index. This is important for investors to know, as active funds may charge higher fees, and may offer more complex strategies.

Technology ETFs: For those familiar with investing in technology stocks, many AI ETFs are essentially portfolios of tech stocks, and often include familiar tech companies such as Microsoft, Nvidia, and AMD. In other words, when investing in a tech-focused ETF, it’s also possible to gain exposure to many AI industry leaders.

Thematic ETFs: Investors can also look for funds that are specifically invested in AI-centered stocks, under the umbrella of thematic ETFs. Thematic funds are those focused on longer-term trends, rather than established sectors (e.g., green technology, water scarcity, or AI).

AI-powered ETFs: As noted above, artificial intelligence algorithms can be used to select and help manage an ETF portfolio. This does not ensure that the fund’s portfolio is invested in AI stocks; it’s best to check the meaning of the AI label from fund to fund.

Top AI ETFs by Assets Under Management in 2026

As of April 2026, these are some of the largest U.S.-based artificial intelligence ETFs, by AUM.

iShares U.S. Technology ETF (IYW)

•   AUM: $21.85 billion

•   Expense ratio: 0.38%

•   Performance (1-year): 29.39%

•   Performance (3-year): 25.35%

•   Top holdings: NVIDIA Corporation (NVDA), Apple (AAPL), Alphabet (both GOOGL and GOOG), Microsoft (MSFT), and Broadcom (AVGO)

•   Why it stands out: This ETF tracks a market-cap weighted index of U.S. technology companies, including many big names in the AI space.

Fidelity MSCI Information Technology Index ETF (FTEC)

•   AUM: $18.214 billion

•   Expense ratio: 0.084%

•   Performance (1-year): 52.7%

•   Performance (3-year): 32.63%

•   Top holdings: NVIDIA Corporation (NVDA), Apple (AAPL) Microsoft (MSFT), Broadcom (AVGO), Micron (MU)

•   Why it stands out: This is another large, diversified AI and big data fund ETF that blends both innovators and infrastructure providers, including many large tech companies.

iShares Expanded Tech Sector ETF (IGM)

•   AUM: $9.72 billion

•   Expense ratio: 0.39%

•   Performance (1-year): 30.95%

•   Performance (3-year): 28.3%

•   Top holdings: Broadcom (AVGO), Apple (AAPL), NVIDIA Corporation (NVDA), Microsoft (MSFT), and Alphabet (GOOGL)

•   Why it stands out: The ETF offers broad exposure to the tech sector, and particularly to those with heavy involvement in AI.

Global X Artificial Intelligence & Technology ETF (AIQ)

•   AUM: $8.88 billion

•   Expense ratio: 0.68%

•   Performance (1-year): 28.54%

•   Performance (3-year): 24.03%

•   Top holdings: SK Hynix Inc. (000660 KS), Intel (INTC), Micron (MU), Samsung Electronics (005930 KS), Advanced Micro Devices (AMD)

•   Why it stands out: Provides broad exposure to the AI sector, particularly in companies who manufacture semiconductors and related components.

iShares Global Tech ETF (IXN)

•   Market cap / AUM: $7.94 billion

•   Expense ratio: 0.39%

•   Performance (1-year): 33.26%

•   Performance (3-year): 23.35%

•   Top holdings: NVIDIA Corporation (NVDA), Apple (AAPL), Microsoft (MSFT), Broadcom (AVGO), Taiwan Semiconductor Manufacturing (2330)

•   Why it stands out: A very broad technology-focused fund, the ETF tracks a market cap-weighted index of international tech stocks.

First Trust Dow Jones Internet Index Fund (FDN)

•   AUM: $5.2 billion

•   Expense ratio: 0.49%

•   Performance (1-year): 5.39%

•   Performance (3-year): 16.55%

•   Top holdings (tickers): Amazon (AMZN), Meta (META), Cisco Systems (CSCO), Netflix (NFLX), Alphabet (GOOG)

•   Why it stands out: The ETF tracks a market-cap-weighted index of large, liquid internet-focused companies in the U.S.

Defiance Quantum ETF (QTUM)

•   AUM: $4.33 billion

•   Expense ratio: 0.4%

•   Performance (1-year): 81.32%

•   Performance (3-year): 48.81%

•   Top holdings (tickers): Intel (INTC), Micron (MU), Global Unichip Corp (3443 TT), STMicroelectronics N.V. (STM), Nokia Oyj (NOK)

•   Why it stands out: Thematic play as this ETF is dedicated to generative AI including large language models (LLMs).

Why Consider Investing in AI ETFs?

There’s no denying that artificial intelligence has already transformed many aspects of the economy and investing, and it appears likely to continue to do so in the years to come. Investing in an AI ETF gives you access to the growing AI technology sector, while potentially diversifying your risk compared to investing in individual AI stocks.

Rather than investing in individual AI companies, an AI ETF gives you broader exposure to a number of different AI companies.

AI ETFs vs Other Investment Options

It’s important to understand how ETFs compare to other investment options.

AI ETFs vs. AI Mutual Funds

The difference between AI ETFs and AI mutual funds is similar to the difference between ETFs and mutual funds in general.

ETFs trade on an exchange, may be passively or actively managed, usually have lower expense ratios than traditional mutual funds, and allow you to trade throughout the day.

In contrast, mutual funds are usually actively managed, can only be traded at the end of each day, are bought directly from the fund company, and often come with higher expense ratios than ETFs.

AI ETFs vs. Individual AI Stocks

Another way to invest in the AI sector is by choosing individual AI stocks to invest your money in. This might include companies that focus on robotics, self-driving vehicles, large language model (LLM) generation, or improving manufacturing processes.

While investing in individual stocks does open up the possibility of higher returns if you pick a company that outperforms the market, you also risk seeing lower returns or losses if your stock doesn’t do well.

Remember that you can choose more niche, targeted AI ETFs. This can allow you to find an ETF that focuses directly on specific applications of AI, like robotics, automation, or self-driving technology.

How to Compare and Choose an AI ETF

With a self-directed investment account, you can research and choose which AI ETF you want to invest in. You can select an AI ETF in the same way you would with any other stock, mutual fund, ETF, or other investment. If you have specific AI companies you want to make sure you have exposure to, check the fund’s top holdings to make sure it’s represented.

You can also look at the fund’s past performance as compared to other funds over the same time period, although keep in mind that past performance does not guarantee future results.

Another important factor to bear in mind is the fund’s expense ratio. These costs, which are often expressed as a percentage, may seem small, but they can add up over time, and all investment fees effectively reduce potential returns.

Reviewing all of these factors can help you decide which AI ETF is right for you.

How to Invest in AI ETFs

There are many different ways to invest in ETFs, and the exact steps will depend on which brokerage you use and what ETFs you are interested in. Your overall investing goals and strategies will be important as well. Still, here are a few steps to consider when investing in AI ETFs:

•   Choose a brokerage: Find a brokerage that offers AI ETFs. You may choose to use a brokerage where you already have an account, or open an account at a different brokerage.

•   Research ETFs: Decide which ETF you want to invest in. Your brokerage may have research tools to help you, or you might choose to research on your own.

•   Place an order: Once you’ve decided how you want to invest, place an order at your brokerage.

Recommended: How to Invest in ETFs

Risks of Investing in AI ETFs

AI ETFs and stocks can be highly volatile. AI assets may fluctuate rapidly as market sentiments swings from enthusiasm to skepticism. Additionally, as with any emerging technology, there is a risk that some AI technology companies may go out of business. The AI industry is highly competitive, with new players appearing and changing frequently.

Many investors view AI as a long-term prospect, similar to the rise of the internet, as more companies and sectors adopt AI technology. Investors are also concerned about the prospect of an AI bubble, similar to the earlier dot-com bubble, given high valuations and concern that the often massive expense of developing AI infrastructures may not lead to near-term profits.

It’s a good idea for investors to consider whether a potentially higher-risk, higher-reward investment, like AI, has a place in their overall portfolio and aligns with their time horizon and goals.

Investing in an AI ETF is generally considered less risky than investing in individual stocks, since you are diversifying your risk across many different companies. However, keep in mind that some AI ETFs may be riskier than others, depending on factors such as their level of diversification, concentration in a particular area, assets under management (AUM), and volatility.

The Takeaway

AI is evolving at a breathtaking pace, with adoption expanding from consumer tools to enterprise solutions, manufacturing, and beyond. For investors interested in broad AI technology funds or more focused strategies like generative AI or robotics, AI ETFs may offer exposure to the potential growth of AI, while balancing risk through more diversified holdings.

Keep in mind that AI investments can be higher risk given their high volatility. A financial planner can help you determine if an AI ETF may be a fit for your portfolio.

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FAQ

How do I choose the right AI ETF?

When choosing an AI ETF, you’ll want to look at factors such as expense ratio, fund size, diversification of holdings, and whether it focuses on pure AI companies or broader technology. It’s also helpful to review an ETF’s holdings to ensure they align with your investment goals and risk tolerance.

Is there an AI-managed ETF?

Yes, some ETFs use AI to pick which stocks to invest in. This may or may not mean the fund itself is invested in artificial intelligence technology, however.

What is the best way to invest in AI?

There is no single best way to invest in AI — instead, it will depend on your risk profile and investment goals. AI ETFs can provide diversified exposure to the sector, which may be less risky than focusing on a single company. More aggressive investors may also consider individual AI stocks or venture capital opportunities in startups.

How are AI ETFs different from regular tech ETFs?

Investing in AI ETFs has a few key differences as compared to investing in technology stocks or technology ETFs. AI ETFs tend to focus on companies that are developing or heavily leveraging artificial intelligence, machine learning, and automation.

What are the biggest risks of investing in AI ETFs?

One of the biggest risks of investing in AI ETFs is high volatility, since AI is still an emerging sector with uncertain regulation and adoption timelines. Because there are not as many companies focusing on artificial intelligence yet, AI ETFs may also be heavily concentrated in fewer stocks. This increases exposure to individual company performance, which can also increase volatility.

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