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ETFs to Watch for the Next Wave of AI Growth in 2025

Clyde MorganSunday, Jan 12, 2025 11:28 am ET
4min read


As the artificial intelligence (AI) revolution continues to gain momentum, investors are looking for ways to capitalize on the growth opportunities in this rapidly evolving sector. Exchange-traded funds (ETFs) focused on AI and related technologies offer a diversified and convenient way to gain exposure to this promising market. In this article, we will explore some of the top AI ETFs to watch for the next wave of growth in 2025.



1. Global X Robotics & Artificial Intelligence ETF (BOTZ)
The Global X Robotics & Artificial Intelligence ETF (BOTZ) is one of the most popular AI ETFs, focusing on companies that potentially stand to benefit from increased adoption and utilization of robotics and AI. With over $2.5 billion in assets under management, BOTZ offers investors exposure to a broad range of AI-related stocks, including semiconductor manufacturers, robotics companies, and AI software providers. Some of its top holdings include Nvidia (NVDA), Intuitive Surgical (ISRG), and ABB (ABBN.Y).



2. ROBO Global Robotics and Automation Index ETF (ROBO)
The ROBO Global Robotics and Automation Index ETF (ROBO) is another popular choice for investors looking to gain exposure to the AI and robotics sectors. With over $1 billion in assets under management, ROBO focuses on companies driving transformative innovations in robotics, automation, and AI. Its portfolio is more diversified than BOTZ, with no single holding accounting for more than 2.3% of the ETF's value. Top holdings include Intuitive Surgical, Celestica (CLS), and Symbiotic (SYM).

3. iShares Future AI & Tech ETF (ARTY)
The iShares Future AI & Tech ETF (ARTY) is a newer ETF focused on companies at the forefront of AI and technology innovation. With over $677 million in assets under management, ARTY offers investors exposure to a diverse range of AI-related stocks, including semiconductor manufacturers, AI software providers, and cloud computing companies. Some of its top holdings include Nvidia, Microsoft (MSFT), and Alphabet (GOOGL).

4. First Trust Nasdaq Artificial Intelligence ETF (ROBT)
The First Trust Nasdaq Artificial Intelligence ETF (ROBT) is another popular choice for investors looking to gain exposure to the AI sector. With over $429 million in assets under management, ROBT focuses on companies involved in the development and use of AI and machine learning technologies. Its portfolio is more diversified than some other AI ETFs, with no single holding accounting for more than 1.5% of the ETF's value. Top holdings include Nvidia, Microsoft, and Alphabet.

5. VanEck Semiconductor ETF (SMH)
While not an AI-specific ETF, the VanEck Semiconductor ETF (SMH) is an excellent choice for investors looking to gain exposure to the AI infrastructure sector. With over $25 billion in assets under management, SMH focuses on companies involved in the semiconductor industry, which is crucial for AI infrastructure. Top holdings include Nvidia, Taiwan Semiconductor Manufacturing (TSM), and Broadcom (AVGO).

When considering AI ETFs for 2025, it's essential to evaluate each fund's expense ratio, diversification, and performance history. Additionally, investors should consider their risk tolerance and investment objectives when selecting an AI ETF. By doing so, investors can position themselves to capitalize on the next wave of AI growth in 2025 and beyond.

Important note: Investors are reminded to do their due diligence and not rely on the information provided as financial advice. Consider this article as supplementing your required research. Please always apply independent thinking.
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