Best Artificial Intelligence (AI) ETFs to buy in 2022

While the pandemic hit the majority of the market, it brought forth a surge in the AI industry. In keeping with the market’s latest hot sector, this page offers a selection of the best AI ETFs for this year.
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Updated: Sep 22, 2022

With the ongoing pandemic, AI has emerged as a significant industry for lucrative commercial investment and there are ETFs that can provide exposure to this industry. As all of us increasingly relied on technology during global lockdowns, AI companies flourished with the renewed demand. This page offers a selection of the best AI ETFs for this year.

What are the top AI ETFs to buy?

Our analysts have selected five of the top AI ETFs for this year as displayed in the table below. Continue scrolling down the page to discover more about each in turn.

#ETF symbolETF nameWhere to Trade
1WTAIWisdomTree Artificial Intelligence ETF
2BOTZGlobal X Robotics & Artificial Intelligence ETF
3AIAIL&G Artificial Intelligence UCITS ETF
4ARKQARK Autonomous Technology & Robotics ETF
5ROBOROBO Global Robotics & Automation ETF
Selected by our team of analysts, October 2022

1. WisdomTree Artificial Intelligence ETF (MILAN:WTAI)

WTAI was created in 2018. It is listed in the United Kingdom and Germany and holds shares in 60 companies from within the AI and robotics industries. The fund seeks to track the price and yield performance of the NASDAQ CTA Artificial Index.

The fund has consistently grown since its conception. It is up 21% over the last year –  thanks in part to the surging popularity of AI stocks since the beginning of the pandemic – and has more than doubled in value since 2018.

Socially conscious investors will be happy to learn that the fund focuses on offering exposure to companies that meet WTAI’s Environmental and Social Governance (ESG) criteria in their use of AI technology. It is further reassuring that an expert AI panel conducts the research and selects companies in the Index for the fund. 

2. Global X Robotics & Artificial Intelligence ETF (NASDAQGM:BOTZ)

BOTZ emerged in 2017. It is listed in America and is more focused than the WTAI fund, as it only owns shares in  36 different companies. The fund seeks to replicate investment results that correspond with the Global Robotics & Artificial Intelligence Thematic Index.

Like most AI ETFs, the fund has been on a strong upward streak since its inception. A lot of that success is down to a handful of companies; around half of the money in BOTZ is invested in just six stocks. The largest of these is Nvidia at 12% – the company has performed particularly well over the last couple of years. 

The fund focuses on the robotics market which was valued at over $23bn in 2020, an estimate that appeals to growth investors. Robotics and AI is a sector with even greater potential, which means that the sky’s the limit for new investors. 

3. L&G Artificial Intelligence UCITS ETF (MILAN:AIAI)

AIAI was established in 2019. It is listed in the United Kingdom and currently contains 74 holdings. The fund seeks to align with the results tendered by the ROBO Global Artificial Intelligence Index.

Since the get-go, the fund’s performance has resulted in happy investors. It is up 17% since last year and is one of the most balanced AI ETFs around. Its largest holding makes up just 2% of the total fund, so it offers one of the most diverse (and least risky) opportunities on the market.

AIAI focuses on global technology stocks, which further boosts its diversity. Another positive sign is that this new fund has management that reinvests the dividends back into the fund, which is a strong indicator of commitment to the cause.

4. ARK Autonomous Technology & Robotics ETF (BATS:ARKQ)

ARKQ started out in 2016. The fund is listed in the United States and currently holds 39 companies. It focuses on investing in autonomous technology and robotics companies that align with its investment theme of disruptive innovation.

The fund’s largest holding is Tesla at 11%. Tesla is a big tech leader focused on disruptive technology and exactly the sort of company that ARKQ likes to invest in. 

A point to note is that ARKQ is an actively-managed ETF. This means a fund manager makes the decisions on what to buy or sell, rather than passively tracking an index. As such, it is a more risk-prone ETF, but there is more scope for capitalising on emerging trends than in traditional ETFs.

5. ROBO Global Robotics & Automation ETF (NYSEARCA:ROBO)

ROBO was launched in 2013. It is listed in the United States and currently has 83 holdings. The ETF presents investors with the opportunities in global companies that drive innovation in automation, AI, and robotics.

Like AIAG above, ROBO is an extremely balanced ETF that holds lots of stocks in small amounts. Its largest holding is the digital healthcare company, iRhythm, which makes up just 3% of the fund.

The fund’s diversification means that there is low specific stock risk to investors. ROBO mitigates risk by limiting its reliance on large-cap players that can really swing the market. Instead, the fund specialises on capturing the potential growth of global companies that focus on developing technology.

Where to buy the best AI ETFs

To buy these ETFs, you must register with an online broker. ETFs are like individual stocks, so you can buy or sell them as you wish. The table below is our choice of the best brokers that offer AI ETFs.

1
Min. Deposit
$ 10
Promotion
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Wire Transfer
Full Regulations:
CySEC, FCA
Investoo Ltd is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes Investoo Ltd to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.
2
Min. Deposit
$ 100
Promotion
User Score
10
Trade out-of-hours on over 70+ US stocks
Get exposure to a wide range of popular UK, US and international stocks
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal
Full Regulations:
ASIC, FCA, FINMA, is a licensed bank (IG Bank in Switzerland)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3
Min. Deposit
$ 0
Promotion
User Score
9.5
$0 commission and $0 Options contract fees
Upgraded research with advanced charts
Smart Menus for faster trades
Start Trading
Payment Methods:
Full Regulations:

What is an AI ETF?

It’s an exchange traded fund that holds shares in companies that operate in the AI industry. Companies in this sector focus on utilising powerful algorithms to create technology and machines that simulate human intelligence.

Artificial intelligence is considered one of the most important industries of the century as it makes production more flexible, reliable, and efficient. The global AI industry is supposed to more than double in growth over the next decade: a huge incentive for investors.   

Are AI ETFs a good investment?

Yes, they are the best bet for investors that are intrigued by the AI industry’s growth potential but wary about cherry-picking individual company stocks.This investment strategy enables investors to focus on taking profits from the growth of AI companies instead of trying to distinguish the winners from the losers.

As AI ETFs provide exposure to an innovative and rapidly growing aspect of the tech industry, they are hugely popular with growth and tech investors. It must be noted that because AI is an industry that is constantly evolving, investors must stay on top of the holdings in their chosen ETFs. If you think AI doesn’t cover as much of the industry as you’d like to, you can also check the best technology ETFs to buy.

The effect of novelty cannot be discounted. Therefore, as a new industry, AI attracts many optimistic investors. AI ETFs contain shares of companies with strong potential to transform the business world. This makes it all the more imperative to track progress in AI with the latest news and developments – you can do so by following the links below.

Latest AI news

Upstart Holdings Inc (NASDAQ: UPST) stock tanked more than 40% in extended trading on disappointing guidance for the full year. Its current quarter results, however, topped Street estimates. Notable figures in Upstart Q1 earnings report Net income printed at $32.7 million that translates to 34 cents…
Elon Musk, the CEO of Tesla (NASDAQ:TSLA), announced on Thursday that the Optimus humanoid robot production could begin as soon as next year. Tesla to begin production of Tesla Bot The Tesla robot, also called the Tesla Bot, was initially hinted at during the electric car maker’s “AI Day”…
AI-powered blockchain platform Oraichain has launched version 2.0 of its mainnet in an upgrade that introduces Layer 2 Rollups and opens up the blockchain space for further adoption of Artificial intelligence and interoperability. In an announcement on Thursday, 24 March, Oraichain said the upgrade brings scalability…
Meta Platforms Inc (NASDAQ: FB), formerly Facebook, claims that it won’t be able to achieve its goal of creating the ultimate metaverse without drastic enhancements in the telecommunication networks of today. The metaverse is apparently the hottest new thing in the tech world right now.  The metaverse is a seamless…
Baidu (HKG: 09888) recorded earnings per share of $1.82 in the fourth quarter, topping the $1.33 analyst estimate by 49 cents. In addition, it reported $5.19 billion total revenue in the fourth quarter, also topping the $5.06 billion consensus estimate.  Baidu tops Q4 consensus estimates Baidu Chief Executive Officer and…
Upstart Holdings Inc. (NASDAQ: UPST) is a leading AI (artificial intelligence) lending platform that grew by 25% in share price after announcing its full-year and fourth-quarter financials for 2021. The company reported $0.89 EPS in the fourth quarter, beating the $0.51 analyst estimate by 38 cents. In addition, total revenue…

Sources & references
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Srijani Chatterjee
Financial Writer
Srijani is the quintessential Third Culture Kid having grown up in India, Singapore, Malaysia, The Netherlands, Scotland, and England. She still loves to travel and speaks… read more.