A Guide to Investing in AI ETFs

The artificial intelligence (AI) sector currently remains one of the most powerful growth engines in the global equity market. Following years of rapid development, 2026 has brought both eye-popping rallies and localized corrections to AI-focused stocks and thematic funds, mapping divergent performance paths. 

For instance, Roundhill Generative AI & Technology ETF has seen a remarkable 57% return so far this year, while the Global X Robotics & Artificial Intelligence ETF BOTZ, which leans heavily into industrial automation, managed a modest 4.4% return in the same period. 

This gap highlights a critical market reality that not all "AI ETFs" are created equal. Funds target vastly different segments of the value chain, from high-margin generative software platforms to capital-intensive hardware and robotics, and achieving meaningful performance requires precise, deliberate allocation.

To help investors balance risk and return, the guide below examines the core drivers that will sustain the AI rally ahead, evaluates key market headwinds, and highlights five top AI ETFs worth considering today.

What Will Continue to Boost the AI Rally?

The primary catalyst behind AI’s historic expansion has been the successful shift from experimental generative AI pilots to full-scale enterprise monetization.

As mega-cap technology giants aggressively expand capital expenditure on data centers, cloud infrastructure, and specialized semiconductors, the industry's growth outlook remains remarkably strong. The four major hyperscalers — Alphabet, Amazon, Microsoft, and Meta — are on track to spend approximately $650 billion in combined capital expenditures in 2026. 

While the initial AI boom was largely driven by hardware powerhouses like NVIDIA NVDA, the market is now entering a second phase. Growth is being increasingly propelled by cloud platforms and software companies — the AI "enablers" and "adopters." Because these firms are converting AI infrastructure into recurring subscription revenues and delivering measurable productivity gains across finance, healthcare, and industrial supply chains, institutional capital is broadening beyond chipmakers.

As a result, the global investment opportunity in AI is expanding rapidly. Goldman Sachs Research projects that global AI-related investment will reach $1 trillion by the end of 2026 alone. Goldman estimates that global AI capex will rise from 0.9% of global GDP in 2026 to 1.3% in 2027 and reach 1.4% by 2028. 

These massive capital commitments underpin a multi-year infrastructure buildout, providing a strong macro tailwind that should continue to boost the AI industry.

Is This a Good Time to Invest in AI?

While long-term fundamentals remain exceptionally strong, prospective investors must remain cautious while investing in AI, keeping in mind the headwinds that currently affect the industry. 

A significant disconnect currently exists between AI spending and proven returns. According to PwC’s 29th Global CEO Survey, published in January 2026, among 4,454 CEOs surveyed across 95 countries and territories, only 12% reported that AI has delivered both cost and revenue benefits. On the contrary, 56% said they have seen no significant financial benefit to date. Until corporate returns catch up with the hype, the market's rally remains partly driven by future expectations rather than immediate execution.

There also remains a risk of valuation compression, with market participants punishing aggressive spending without near-term yield. Take Meta Platforms META as a prime example: despite delivering solid earnings growth in the second quarter of 2026, the stock saw sharp pullbacks after management aggressively raised the lower end of its 2026 capital expenditure guidance. This market reaction underscores how investors are increasingly penalizing massive infrastructure bills when immediate monetization lags.

That said, it would be a mistake to miss out on a multi-trillion-dollar growth market, especially given that the long-term macro trajectory for AI remains firmly intact. As AI tools transition from early-adopter novelties into mission-critical business utilities, pure-play and broad-spectrum AI ETFs remain uniquely positioned to compound value over the next decade — offering a diversified alternative to individual stocks that carry concentrated earnings risk.

AI ETFs Investors May Consider Buying

Global X Artificial Intelligence & Technology ETF AIQ

This fund, with net assets worth $10.26 billion, offers exposure to 88 companies that potentially stand to benefit from the further development and utilization of AI technology in their products and services, as well as in companies that provide hardware facilitating the use of AI for the analysis of big data. Palantir PLTR holds the first spot in this fund, with 3.82% weightage. 

AIQ has rallied 25.3% yearn to date and charges 68 basis points (bps) as fees. It traded at a volume of 0.80 million shares in the last trading session.

Roundhill Generative AI & Technology ETF CHAT

It is an actively managed fund and the world’s first Generative AI ETF, with assets under management (AUM) of $1.93 billion, offering exposure to 51 companies involved in the investment theme of artificial intelligence, generative artificial intelligence, and related technologies. NVDA holds the first spot in this fund, with 6.47% weightage. 

CHAT has soared 57.2% year to date and charges 75 bps in fees. It traded at a volume of 0.38 million shares in the last trading session. 

First Trust NASDAQ Artificial Intelligence and Robotics ETF ROBT

This fund, with net assets worth $778.7 million, offers exposure to 114 companies engaged in AI, robotics and automation. Appian Corporation holds the first spot in this fund, with a 2.14% weightage. 

ROBT has gained 14.7% year to date and charges 65 bps as fees. It traded at a volume of 0.06 million shares in the last trading session. 

ROBO Global Artificial Intelligence ETF THNQ

This fund, with net assets worth $449.8 million, includes 53 companies developing the technology and infrastructure enabling AI, such as computing, data and cloud-services, as well as companies that apply AI in various verticals, from business processes to e-commerce and healthcare, among others. Everpure holds the first spot in this fund, with 2.96% weightage. 

THNQ has surged 46% year to date and charges 68 bps in fees. It traded at a volume of 0.04 million shares in the last trading session. 

WisdomTree Artificial Intelligence and Innovation Fund WTAI

This fund, with net assets worth $704.8 million, includes companies that are primarily involved in the investment theme of AI and Innovation. NVDA holds the first spot in this fund, with 5.16% weightage. 

WTAI has soared 46.4% year to date and charges 45 bps in fees. It traded at a volume of 0.09 million shares in the last trading session.  

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This article originally published on Zacks Investment Research (zacks.com).

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