Inexperienced investors may seek pearls of wisdom from various sources, though ancient Chinese philosophy probably isn't one of the top choices.
But maybe it should be.
Lao Tzu's sage advice, a journey of one thousand miles begins with a single step, applies just as well to growing personal wealth. Simply starting with a $100 investment in artificial intelligence (AI) ETFs Global X Robotics and Artificial Intelligence ETF (BOTZ 1.10%), iShares Future AI & Tech ETF (ARTY 0.57%), and Vanguard Information Technology ETF (VGT 0.28%) can lead investors down the path of fattening their piggy banks thanks to the tremendous growth in AI projected for the coming years.
Business intelligence provider Fortune Business Insights projects that the generative AI market alone will rise at a 39.6% compound annual growth rate from $67.2 billion in 2024 to $967.7 billion by 2032.
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For concentrated exposure to AI and machines, there's the Global X Robotics and Intelligence ETF
Since September 2016, the Global X Robotics and Intelligence ETF has provided investors with exposure to leading AI and robotics stocks. While semiconductor stalwart Nvidia (NASDAQ: NVDA) is the largest position in the fund with a 10.4% weighting, robotics leaders ABB and Intuitive Surgical represent other top positions with weightings of 8.4% and 7.5%, respectively.
Many AI discussions address generative AI, but investors would be short-sighted to not recognize the growth of robots with AI capabilities. In addition to autonomous drones, self-driving cars and other AI-embedded machines are increasingly present in our lives. Grand View Research, for example, projects that the global smart robots market size totaled $33.8 billion in 2024 and will soar at a 26.5% rate from 2025 to 2030.
And it's hard to believe that in the years beyond 2030, the growth of autonomous robots will start to taper off, suggesting that the Global X Robotics and Intelligence ETF, which has a 0.68% total expense ratio, is a smart position for the long haul.
The iShares Future AI & Tech ETF offers broad AI exposure
From enabling generative AI tools to specializing in AI infrastructure to developing AI software, the iShares Future AI & Tech ETF provides investors with broad exposure to companies throughout the AI industry. Of the 50 holdings, semiconductor stocks figure prominently. Broadcom (NASDAQ: AVGO) is the largest position in the fund, while Nvidia represents the third-largest holding. Data center equipment provider Vertiv also has a notable position in the fund as the second-largest holding.
With $986 million in net assets, the iShares Future AI & Tech ETF is a great choice for investors who don't want to pigeon-hole themselves with exposure to a niche of the AI industry. The ETF, for instance, helps to mitigate the risk of generative AI or autonomous robots failing to flourish as much as forecasts suggest. Plus, investors won't have to pay an arm and a leg in management costs since the ETF has a 0.47% expense ratio.
Those looking for AI and more will love the Vanguard Information Technology ETF
Those looking for a more measured approach to AI exposure will find the Vanguard Information Technology ETF (VGT 0.28%) to be an interesting option. Vanguard states that the ETF focuses on companies that "serve the electronics and computer industries or that manufacture products based on the latest applied science." It just so happens, however, that many of these companies are turning their attention to AI.
While there are 307 stocks in the Vanguard Information Technology ETF, only three stocks -- Magnificent Seven stocks, in fact -- do the heavy lifting. Combined, Apple, Microsoft, and Nvidia represent 45.7% of weighting in the fund. Broadcom is the fourth-largest position, while Salesforce rounds out the top five.
Conservative investors will find the ETF appealing considering its broad exposure to information tech stocks. And since Vanguard manages the ETF, investors don't have to fret about high management fees. The Vanguard Information Technology ETF has an extraordinarily low 0.09% expense ratio.
Which ETF is the best way to invest $100 right now?
From semiconductors to data centers, the number of companies that offer AI exposure may seem overwhelming, making it hard for people to decide how to get started with investments in the burgeoning technology. Fortunately, there are several ETFs that make it easy, offering one-stop AI shopping.
Those interested in concentrated exposure to AI and robotics will want to consider the Global X Robotics and Intelligence ETF, while those more interested in broader exposure to the AI field will find the iShares Future AI & Tech ETF a better option. Investors interested in a low-cost option, on the other hand, that has the broadest AI exposure should take a close look at the Vanguard Information Technology ETF.
