4 of the Best AI ETFs to Buy Now

You probably interact with artificial intelligence (AI) more often than you think. AI is powering the algorithm arranging your Netflix (NFLX 0.08%) menu, the software expediting your Amazon (AMZN 1.52%) package, and the brains behind many of the smartphone apps you use every day.

If you've used ChatGPT, the OpenAI chatbot that has wowed users by writing code and instantly answering complex questions, you've gotten a glimpse into the next frontier in AI, known as generative AI. Big tech companies, including Google's Gemini and Meta AI, are racing to develop AI chatbots and other generative AI technologies.

If you want portfolio exposure to AI companies but don't want to identify individual AI stocks, you can invest in an AI-focused exchange-traded fund (ETF). AI ETFs provide exposure to a broad range of the best AI companies, so you don't need to research and choose individual stocks on your own.

Best AI ETFs to buy in 2025

Best AI ETFs to buy in 2025

Keep reading to learn more about each of these AI ETFs.

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1. Global X Robotics & Artificial Intelligence ETF

Established in 2016, the Global X Robotics & Artificial Intelligence ETF (BOTZ 0.7%) is a fund that invests in "companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence." That includes enterprises working in industrial robotics, automation, nonindustrial robots, and autonomous vehicles.

Global X currently holds 46 stocks. Its top five holdings, which account for about 45% of the fund's assets, are:

• Nvidia (NVDA 3.43%): A semiconductor maker whose chips are used in a wide variety of applications -- including autonomous vehicles, virtual computing, and cryptocurrency mining -- and are central to many AI technologies.
• Intuitive Surgical (ISRG 1.32%): Maker of the da Vinci robotic surgical system, which allows for minimally invasive surgeries with precise control.
• ABB (OTCPK:ABBN.Y): Swiss maker of industrial automation and robotics products for use in utilities and infrastructure.
• Keyence (KYCCF -0.92%): A Japanese company that makes factory automation products, such as sensors and scanners.
• SMC Corp. (SMCA.Y -0.82%) Japanese manufacturer of automatic control equipment for a variety of industrial applications.

As the chart below shows, shares of the ETF have underperformed the S&P 500 index since its launch in 2016. The share price fell sharply in 2022, in line with the broad sell-off in tech stocks, although Global X has rebounded since then.

Global X offered a modest dividend yield of 0.15% at the time of this writing, but it is better suited to be a growth-oriented investment. Its expense ratio of 0.68% is higher than what you'd pay for an index fund.

2. ROBO Global Robotics and Automation Index ETF

The ROBO Global Robotics and Automation Index ETF (ROBO 1.35%) is focused on companies driving "transformative innovations in robotics, automation, and artificial intelligence." ROBO invests in companies primarily focused on AI, cloud computing, and other technology companies.

ROBO holds 78 different stocks, with no single holding accounting for more than 2.3% of the ETF's value. Its top five holdings comprise only about 10% of the fund's total value. These five companies include Intuitive Surgical, the maker of the da Vinci surgical robot, and four others:

• Celestica (CLS 1.9%): A provider of supply chain components and services for electronics companies like circuit board assemblies, product assembly, prototyping, and logistics and inventory management.
• Symbiotic (SYM 4.13%): A specialist in automation technology, Symbiotic makes autonomous robots for warehouses and develops complex algorithms for things like inventory management and space utilization.
• Ambarella (AMBA 0.83%): A semiconductor company that develops system-on-chips (SoCs) sued for applications like video processing, computer vision, and artificial intelligence (AI).
• Joby Aviation (JOBY 0.61%): A development-stage maker of electric vertical takeoff and landing (eVTOL) vehicles. The company is aiming to develop local, short-distance air taxi markets.

Since its inception in 2013, ROBO has underperformed the S&P 500, as the chart below shows. It trails the broad market index, with dividends factored into the return. ROBO pays a dividend yield of 0.05%, and its expense ratio is 0.95%.

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3. iShares Robotics and Artificial Intelligence ETF

The iShares Robotics and Artificial Intelligence ETF (ARTY 2.44%), formerly traded under the ticker IRBO, aims to track the results of an index of developed and emerging market companies that could benefit from long-term opportunities in robotics companies and AI.

The ETF was formed in 2018 and has less than $1 billion of assets under management. With 47 stock holdings, it's now well diversified. Many of its top holdings also give investors exposure to fast-growing small-cap companies.

The fund's top five investments, which account for about 25% of iShares Future of AI & Tech assets, include Nvidia and four others:

• Broadcom (AVGO 1.66%): A semiconductor giant best known for its prowess in areas like networking and custom chips, Broadcom is seen as a winner from AI. The company has also grown by acquisitions over the years, recently taking over VMware.
• Palantir (PLTR -4.97%): The cloud software company that specializes in data fusion has attracted a lot of attention since the launch of its artificial intelligence platform, which has driven strong growth in its commercial business.
• Advanced Micro Devices (AMD 3.33%): A chipmaker best known for PC CPUs and gaming chips, AMD is also challenging Nvidia in the data center with its Mi300 accelerator.
• Snowflake (SNOW 0.53%): The leading data warehouse company figures to play a role in AI as much of generative AI depends on easy storage and access to data.

As you can see from the chart below, iShares Robotics has underperformed the S&P 500 since its founding. The ETF fell in 2022 when tech stocks crashed.

The expense ratio is competitive at 0.47%, and the dividend yield at the time of this writing is 0.8%. The fund's performance will likely be heavily influenced by the overall performance of cloud and chip stocks since that's what it's primarily exposed to.

4. First Trust Nasdaq Artificial Intelligence & Robotics ETF

First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT 1.22%) tracks the Nasdaq CTA Artificial and Robotics index, which is made up of companies engaged in AI and robotics in technology, industrials, and other sectors.

The fund currently holds 107 stocks, and the top five holdings include Palantir and Symbiotic, as well as the following:

• Upstart Holdings (UPST -0.87%): An AI-powered loan origination platform focusing on consumer loans.
• C3.ai (AI 0.41%): A software-as-a-service focused on applications running AI for specific processes in addition to an AI enterprise platform.
• Pegasystems (PEGA -0.95%): A cloud software company focused on automation and AI.

The First Trust ETF offers an expense ratio of 0.65% and a dividend yield of 0.24%. Although its trading history is relatively short, you can see from the chart below that its performance has lagged the S&P 500 recently.

Should I buy AI ETFs?

Should I buy AI ETFs?

The best way to decide which ETF to buy is to consider which stocks a fund holds and how many of them are true AI companies. A fund's expense ratio, dividend yield, and past performance are also important, and you can opt to invest in a basket of all four of these AI ETFs to maximize your diversification.

Over time, AI, like chatbots, will grow smarter and play a greater role in our daily lives. Already, AI represents a global market worth hundreds of billions of dollars, and its wide range of practical applications includes face recognition, predictive algorithms in internet search, smart home devices, and autonomous vehicles. So pay attention to the AI market now, and you may find yourself reaping the rewards in years to come.

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