The artificial intelligence (AI) space continues to thrive despite potential setbacks from U.S. tariff-related increases to imported chip prices and efficient models like DeepSeek that threaten to upend the industry. Indeed, analysts predict the global AI market will reach more than $244 billion in size during 2025 and that it could top $1 trillion in just six years.
Investors will certainly want a stake in AI companies, given such lofty expectations of future growth. However, in a consolidating industry with an ever-growing number of startups and smaller firms jockeying for positions, it's difficult to pick out who the major winners of AI will be in several years. This is one reason why a related exchange-traded fund (ETF) may be a good all-around bet for investors hoping to focus on AI with a broadly diversified investment.
Investors have more choice within AI ETFs. There are funds with a general AI focus, those with a specific interest in AI's impact on certain industries like manufacturing and automation, and even funds tracking companies developing crucial AI hardware like semiconductors. We highlight one fund in each of those categories for investors to consider.
Broad AI and Tech Exposure in a Single Fund
The iShares Future AI & Tech ETF (NYSEARCA: ARTY) is a fund to consider for investors seeking generalized AI exposure. ARTY's investment mandate includes companies across the industry, including those involved in generative AI, software and services, and data and infrastructure related to this technology. With more than 50 holdings, including major tech firms like AMD Inc. (NASDAQ: AMD), Microsoft Corp. (NASDAQ: MSFT), and Amazon.com Inc. (NASDAQ: AMZN) in its portfolio, ARTY is also fairly successful as a broad tech fund.
Although some 85% of its assets are invested in U.S. firms, ARTY also allows exposure to international companies working in AI, giving it the flexibility to adapt its portfolio as new global leaders emerge. The assets are also well distributed, with no single holding occupying even as much as 5% of the portfolio. ARTY has stumbled so far this year along with the tech sector and the overall market, but its fee of 0.47% is fairly reasonable for an AI fund.
Harnessing Disruptive Innovation in Autonomous Technology & Robotics for Strong Returns
The ARK Autonomous Technology & Robotics ETF (BATS: ARKQ) targets companies in the area of "disruptive innovation," such as autonomous mobility, adaptive robotics, neural networks, and intelligent devices. Thus, while ARKQ is not strictly speaking an AI-focused fund, there is considerable overlap between many of the firms found in this fund's portfolio and those other ETFs in the space.
ARKQ's broad focus on several different categories of innovation makes it less reliant on the breakthrough success of any single technology. Further, as an actively managed fund, it has substantial flexibility to shift its focus over time as one or more of these technologies become widespread. This management approach does lead to a higher expense ratio of 0.75%, but this remains relatively low compared with many actively managed funds.
With 38 holdings, the largest representing more than 12% of assets, ARKQ has a more consolidated portfolio than ARTY. This has paid off in the last year, as the fund generated a one-year return of more than 28% as of April 3, 2025.
Invest in Essential Tech with Low Fees
An even less direct way to gain exposure to the AI industry may be through a fund like iShares Semiconductor ETF (NASDAQ: SOXX). SOXX may appeal to investors in the current environment of heavy tariffs because it is focused on North American names, though it holds just over 30 stocks. A benefit to focusing on semiconductor stocks is that, while they are crucial to AI technology, they are also essential for a host of other industries related to computing.
SOXX has the lowest expense ratio of the three firms on our list, with 0.35% in fees per year. It also has an unusually active investor pool, with about 3.5 million in one-month average trading volume. This should ensure that it is easy to buy and sell shares of the fund, although SOXX is also suitable as a buy-and-hold vehicle. This latter approach may appeal to investors seeking to purchase increasingly affordable semiconductor stocks as the market downturn continues.
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The article "3 ETFs That Offer Easy Exposure to the AI Revolution" first appeared on MarketBeat.
