Best AI ETFs – Guide to Develop Generational Wealth Starting 2025!
by Susmita Sen Finance 16 October 2024
If you have been following the latest trends in technology and overall global trends, you’ll see a surge in artificial intelligence. If you want to get a piece of that wealth, here are the best AI ETFs that will help you grow your wealth.
It is more than a buzzword now; it has some serious potential in various sectors. Investing in AI shouldn’t seem far-fetched anymore! Be it automation or machine learning, AI is the driving force behind many innovations across several industries.
It is even finding its place in medical science and diagnosis! So, it is only correct to say that its future is bright. Forget hedge funds vs mutual funds; AI ETFs all the way!
Why not let that light shine on us? The following sections will tell you how to start investing in this sector with the top 10 AI ETFs right now!
What are AI ETFs? How Do They Bring Me Money?
No, it’s not an evil robot that AI has taken over (Ultron, is that you?) AI ETFs or Exchange-traded funds offer one of the most accessible ways to invest in AI. These are funds that are:
- Invested in companies developing new products or services, scientific research, or technological improvement involving AI
- These have a portfolio exposure of at least 25% to large companies that spend a significant sum on AI. Think of Tesla, Apple, Amazon and Alphabet
- These funds use AI to select individual securities for inclusion in funds.
Anyone with the basic knowledge of investment would tell you to invest your money in things with a future. This way, your money takes you to that future. It sounds a little philosophical, I know. But financial forecasting points at AI ETFs!
Best AI ETFs are the same where you’re investing in a future that’s planned on using AI for practically everything imaginable! So, why not look at the top 10 ETFs to help you make generational wealth for your future?
The following section will give you valuable information, such as the expense ratio, performance potential, and critical holdings.
10 Best AI ETFs to Invest in for a Secure Future!
The future is AI – sounds like the tagline of a product, but it’s the reality we’ll soon be living in. Right now, companies are only giving us a glimpse into the utility of AI and its integration into our lives.
But that day isn’t far from reality when every technology we use has an in-built AI. That can get work done even if we think about it! Black mirror may have been right the whole time!
So, without thinking twice, choose these best AI ETFs to get your money’s worth. Trust me; you do not need a debate on wealth management vs. investment banking!
So, here are the best AI ETFs you should invest in now to make filthy money by 2025:
1. Global X Robotics & Artificial Intelligence ETF (BOTZ)
BOTZ is one of the best AI ETFs doing great on the market. It is one of the leading ETFs focused on companies overseeing robotics and AI technologies. Based on the market summary, you can think of it as one of the top performers.
It has holdings in companies such as ABB and NVIDIA. This ETF exposes the role of AI in the automation sector. As AI is becoming prevalent in healthcare, manufacturing, and data processing sectors, BOTZ offers a well-rounded portfolio.
This can be a great place to start when you want to benefit from the growth in this sector.
Key holdings: NVIDIA, Keyence, ABB
Expense ratio: 0.66%
Performance potential: High potential, given the rising demand for AI-driven manufacturing and automation processes.
2. ARK Autonomous Technology & Robotics ETF (ARKQ)
Steadily climbing the market, ARKQ is a well-known ETF that ARK Investment Management manages. ARKQ focuses on autonomous technology and AI, in sectors such as automation, transportation, and robotics.
The second on this list of best AI ETFs earmarks companies such as Tesla that have their head in the future. It also targets companies that are leaders in using AI for autonomous driving. ARKQ is ideal for those investors who want exposure to transformative AI-driven technologies.
Key holdings: Trimble, Baidu and Tesla
Expense ratio: 0.75%
Performance potential: Strong potential due to the emphasis on automation and mobility using AI.
3. iShares Robotics and Artificial Intelligence ETF (IRBO)
With no upside potential for IRBO, there is still a positive perspective on buying this ETF. IRBO ETF has global robotics and AI in its grip, with holdings in NVIDIA, Accenture, and Fortinet. There are others in multiple geographies and industries that the ETF invests in.
Its portfolio includes tech giants such as Alphabet, amongst lesser-known innovators that offer a broad base for exposure to AI advancements. The diversified holding of this ETF provides a balance between players in large-cap AI and more petite, emerging companies in the AI space.
Key holdings: Cognex, Alphabet and Ambarella
Expense ratio: 0.47%
Performance potential: Moderate to high, currently being moderate in its potential. But thanks to its balanced exposure to established and emerging AI firms.
4. Wisdom Tree Artificial Intelligence & Innovation Fund (WTAI)
The WTAI ETF aims at companies at the forefront of innovation and AI. With a diverse portfolio, this ETF focuses on firms engaging with different aspects of AI. Think of hardware to software development; this WTAI offers broad exposure to all AI-related industries.
Its holdings are in companies leading in AI innovation, such as cloud computing, AI-based infrastructure, and machine learning.
Key holdings: Microsoft, Qualcomm, NVIDIA
Expense ratio: 0.45%
Performance potential: Strong potential owing to the accelerated adoption of AI in tech infrastructure
5. Global X Robo Global Robotics and Automation Index (ROBO)
One of the first ETFs to focus solely on automation and robotics, this ETF provides global AI and robotics exposure. With a steady market performance, ROBO has been doing quite well.
It focuses on companies involved in various sectors, such as defence or healthcare. There is a growing demand for AI-driven automation solutions, so this ETF is undoubtedly a consideration for long-term profits.
Key holdings: Zebra Technologies, Fanuc, Intuitive Surgical
Expense ratio: 0.95%
Performance potential: High potential as it focuses on AI’s role in automation across sectors/industries
6. SPDR S&P Kensho Intelligent Structures ETF (SIMS)
This is not exclusively focused on AI. However, this forms part of the best AI ETFs to buy because it targets companies building intelligent infrastructure. It focuses on companies using AI to build smart cities, automobiles, and buildings.
AI forms a crucial part of these sectors, driving innovation and efficiency in urban planning, construction, and energy use. So, this will be one of the top 6 best AI ETFs to invest in if you want to grow your wealth by 2025!
The development of smart cities around you indicates that AI ETFs are safe. AI-driven solutions could be indispensable, which makes SIMS a long-term winner!
Key holdings: Emerson Electric, Rockwell Automation, Honeywell
Expense ratio: 0.45%
Performance potential: Moderate to high as the growth of smart cities is tied to it.
7. First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)
A recent positive growth in its performance makes it a part of this list of best AI ETFs that will bring you profits by 2025! These ETFs track companies involved in AI, automation, and robotics, thus providing exposure to AI’s hardware and software aspects.
This makes ROBT a well-rounded choice for investors! Because ROBT invests in firms that apply and develop AI technologies across different sectors, it is a great candidate for searching for comprehensive AI exposure.
Key Holdings: NVIDIA, iRobot, Cadence Design Systems
Expense ratio: 0.65%
Performance potential: Moderate to high due to its diverse portfolio that focuses on AI and robotics. Both of which have a bright future.
8. Invesco QQQ ETF (QQQ)
QQQ is a broad-based technology ETF that focuses on many of the global leaders in AI. It mimics the Nasdaq 100 index returns and includes some leading AI companies, such as Meta (Facebook), Microsoft, and Alphabet.
QQQ is an excellent option for anyone looking to learn about companies involved in AI technologies. The ETF also provides exposure to broad tech exposure, focusing on major AI players.
Key holdings: Microsoft, Apple, Alphabet
Expense ratio: 0.20%
Performance potential: high potential as it has holdings in leading AI-driven tech companies.
9. Amplify Transformational Data Sharing ETF (BLOK)
Despite its primary focus on blockchain technology, BLOK invests in companies that intersect with AI. Specifically in secure transactions and data sharing. Several of its holdings include firms developing AI solutions for analytics, security, and data management.
With the increasing overlap of AI technologies and blockchain, BLOK offers a unique way to gain exposure to both sectors.
Key Holdings: IBM, NVIDIA, AMD
Expense Ratio: 0.71%
Performance Potential: High potential due to the convergence of AI and blockchain in data-driven industries.
10. KraneShares CSI China Internet ETF (KWEB)
Focusing on leading Chinese internet and AI companies such as Alibaba and Baidu, KWEB is the 10th best AI ETF you should have on your list! The ETFs expose some of the biggest names in AI developments in the Asian market.
This is particularly important as the Chinese government prioritizes AI development, making KWEB an excellent opportunity to tap into overseas AI expansion.
Key Holdings: Baidu, Alibaba, Tencent
Expense Ratio: 0.73%
Performance Potential: High potential for investors looking to capitalize on AI advancements in the Chinese market!
This concludes the list of best AI ETFs with great potential to bring you immense wealth, helping you start your financial growth.
AI Investment Is the Way!
That was all on the best AI ETFs for investors wanting to grow their wealth by 2025. The article provides valuable insight into the different AI ETFs currently doing great on the market.
You must also ascertain all investment models’ risks and make your choices accordingly. Despite being a thoroughly researched article, you must ensure that you conduct additional research per your financial goals.
Consult a financial advisor for advice that’s aligned with your financial needs.
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