5 Best AI ETFs to Buy for Q3 2024

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: Jul 8, 2024
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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?

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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 nameLearn more
1IGPTInvesco AI and Next Gen Software ETFLearn more >
2AIQGlobal X Artificial Intelligence & Technology ETFLearn more >
3BOTZGlobal X Robotics & Artificial Intelligence ETFLearn more >
4IRBOiShares Robotics and Artificial Intelligence Multisector ETFLearn more >
5ROBTFirst Trust Nasdaq Artificial Intelligence and Robotics ETFLearn more >
Selected by our team of analysts, July 2024

1. Invesco AI and Next Gen Software ETF (NYSEARCA: IGPT)

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  • Current price: $47.40
  • AUM: $374.93 million
  • Annual expense ratio: 0.60%
  • YTD performance: 22.77%
  • Annual dividend yield: N/A

Invesco AI and Next Gen Software ETF offers targeted exposure to companies leading the charge in AI and software development. Tracking the STOXX World AC NexGen Software Development Index, IGPT invests predominantly in firms driving technological advancements across IT, software, and related services.

With a concentrated yet diversified portfolio, it holds top positions in tech giants like Alphabet, Meta Platforms, and NVIDIA, reflecting its strategic focus on industry leaders poised for growth in AI-driven innovations.

The fund’s sector allocation underscores its commitment to technology, particularly in semiconductors and software, essential for AI advancements. This strategic emphasis has delivered strong returns, with a YTD performance of 22.77%.

IGPT provides investors with a compelling opportunity to capitalize on the accelerating adoption of AI technologies globally, making it a standout choice in the AI ETF landscape for Q3 2024.

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2. Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ)

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  • Current price: $35.79
  • AUM: $2.08 billion
  • Annual expense ratio: 0.68%
  • YTD performance: 14.79%
  • Annual dividend yield: 0.17%

The Global X Artificial Intelligence & Technology ETF distinguishes itself by offering broad exposure to companies at the forefront of AI innovation globally. Managed by Global X Management Company LLC, AIQ tracks the Indxx Artificial Intelligence & Big Data Index, which includes firms specializing in AI development, AI-as-a-service, and related hardware.

AIQ’s approach emphasizes inclusivity across AI sectors, ranging from software development to quantum computing, thereby mitigating sector-specific risks while maximizing exposure to emerging technological trends. The fund’s portfolio composition, consisting of 91 holdings as of June 2024, underscores its commitment to maintaining a diversified stance within the AI sector.

Investors seeking to capitalize on the expansive growth forecasted for AI technologies can find AIQ an attractive investment option, offering a balanced mix of established tech giants and promising newcomers poised to redefine the industry landscape.

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3. Global X Robotics & Artificial Intelligence ETF (NASDAQ: BOTZ)

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  • Current price: $30.72
  • AUM: $2.71 billion
  • Annual expense ratio: 0.68%
  • YTD performance: 7.79%
  • Annual dividend yield: 0.15%

Global X Robotics & Artificial Intelligence ETF stands out for its comprehensive approach to robotics and AI, offering investors exposure across a diverse array of sectors beyond traditional industrial automation. With holdings spanning from industrial robotics to AI-driven software and medical instruments, BOTZ strategically diversifies within the technology sector.

This broader scope mitigates sector-specific risks while positioning the fund to capitalize on emerging opportunities in AI technology across global markets. The ETF’s portfolio composition reflects its emphasis on both established leaders and innovative newcomers in the robotics and AI space.

Key holdings like NVIDIA Corp and Intuitive Surgical Inc underscore its focus on companies at the forefront of technological innovation. This balanced mix not only supports potential growth but also enhances portfolio resilience through diversified sector exposure.

Investors seeking a nuanced approach to AI investing, encompassing both hardware and software advancements, may find BOTZ an appealing choice amidst the evolving landscape of technological disruption.

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4. iShares Robotics and Artificial Intelligence Multisector ETF (NYSEARCA: IRBO)

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  • Current price: $33.11
  • AUM: $659.26 million
  • Annual expense ratio: 0.47%
  • YTD performance: -4.03%
  • Annual dividend yield: 0.81%

iShares Robotics and Artificial Intelligence Multisector ETF by BlackRock provides a unique blend of exposure to the global robotics and AI sectors. Unlike its peers, IRBO adopts a comprehensive strategy that includes not only pure-play AI companies but also integrates robotics technologies across diverse industrial applications.

With holdings spanning IT, software development, and robotics technologies, IRBO diversifies investor risk while offering targeted exposure to cutting-edge advancements in automation and AI-driven innovations. Despite facing headwinds with a YTD performance of -4.03%, IRBO’s deliberate sectoral diversification positions it uniquely in the AI ETF landscape.

By investing across a spectrum of industries from semiconductor manufacturers to AI software developers, the ETF mitigates sector-specific volatility while capitalizing on broad-based growth opportunities.

This approach makes IRBO suitable for investors seeking to capitalize on the transformative potential of AI without overexposing themselves to the inherent risks of single-sector ETFs.

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5. First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ: ROBT)

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  • Current price: $42.08
  • AUM: $518.48 million
  • Annual expense ratio: 0.65%
  • YTD performance: -7.58%
  • Annual dividend yield: 0.27%

The First Trust Nasdaq Artificial Intelligence and Robotics ETF stands out in the AI ETF landscape for its meticulous approach to capturing the AI and robotics sectors. Unlike its peers, ROBT emphasizes a balanced exposure across three core categories: enablers, engagers, and enhancers within the AI ecosystem.

This strategic diversity mitigates risk while providing comprehensive coverage of companies involved in AI development, from foundational technology providers to integrators and service enhancers. ROBT’s index methodology, based on the Nasdaq CTA Artificial Intelligence and Robotics Index, ensures a well-rounded portfolio composition that includes top holdings like SentinelOne Inc, ServiceNow Inc, and Palantir Technologies Inc.

This blend not only offers exposure to pure-play AI companies but also integrates critical components of robotics and automation, enhancing the ETF’s resilience and growth potential in a rapidly evolving sector. Investors seeking a nuanced approach to AI investments, with a focus on both technological advancement and sectoral diversity, may find ROBT an attractive choice.

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Where to buy the best AI ETFs

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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.

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1
Min. Deposit
$ 100
Best offer
User Score
9.9
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, Debit Card, PayPal, Credit Card, Wire Transfer
Full Regulations:
CySEC, FCA

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB.

2
Min. Deposit
$ 100
Best offer
User Score
9.9
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
Bank Transfer, Debit Card, PayPal, Credit Card, Visa, Mastercard, American Express, Trustly, Apple Pay, Google Pay, Discover, Bank Transfer: SEPA, Bank Transfer: FPS, skrill
Full Regulations:
ASIC, FCA, FSA, MAS, CySEC #250/14

CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3
Min. Deposit
$ 0
Best offer
User Score
9.1
Get insights from millions of investors, creators, and analysts
Build your portfolio of stocks, ETFs, and crypto–all in one place
No minimum deposit
Start Trading
Payment Methods:
Debit Card, Wire Transfer, Check, Bank Wire
Full Regulations:
Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

What is an AI ETF?

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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?

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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.

Sign up to a broker to buy AI ETFs

Methodology: How we choose the best AI ETFs

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At Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.

  • Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
  • ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
  • Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
  • Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
  • Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.


Sources & references
Risk disclaimer
Ritesh A.
Market Analyst & Pro-Trader
Ritesh is a Market Analyst & Pro-Trader for Invezz, covering the stocks, forex, and commodities markets. With over a decade of experience in fundamental and technical... read more.
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.