You don't have to pick the best artificial intelligence (AI) stocks when a bunch of AI ETFs do that for you. Some of the top AI funds have left the S&P 500 in the dust over the past five years, and their top holdings suggest repeat performances.
These AI ETFs give investors exposure to chipmakers, energy plays, robotics stocks, and other opportunities.
1. VanEck Semiconductor ETF (SMH)
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The VanEck Semiconductor ETF (SMH +0.19%) gives investors exposure to industry-leading semiconductor stocks like Nvidia (NVDA +1.50%), Taiwan Semiconductor (TSM 1.31%), and Broadcom (AVGO 4.31%). These companies address the rising demand for AI chips.
NASDAQ: SMH
Key Data Points
All of SMH's top 10 holdings have outperformed the S&P 500 this year, and the fund has an annualized 30.3% return over the past decade. SMH has a 0.35% expense ratio.
SMH has 25 stock positions, and the fund's top 10 holdings make up more than 75% of its total assets. The top three holdings make up more than one-third of SMH's positions.
2. CoinShares Bitcoin Mining ETF (WGMI)
The CoinShares Bitcoin Mining ETF (WGMI 2.42%) focuses on crypto mining stocks that have pivoted to AI infrastructure. Just like SMH, it is heavily concentrated, with its top 10 holdings making up more than 80% of its total assets.
NASDAQ: WGMI
Key Data Points
IREN (IREN +1.42%) and Cipher Mining (CIFR 3.49%) make up 40% of the fund's total assets. The next three positions -- Bitfarms (BITF 5.46%), TeraWulf (WULF 1.42%), and Riot Platforms (RIOT 4.03%) make up roughly 20% of the fund's total assets.
The fund is small, with less than $300 million in net assets. It also has a 0.75% expense ratio, which is higher than most funds. However, WGMI has more than doubled this year, and the intersection of AI chips, data centers, and gigawatts makes WGMI worth watching.
3. Roundhill Generative AI & Technology ETF (CHAT)
The Roundhill Generative AI & Technology ETF (CHAT +0.33%) is an actively managed fund that specializes in generative AI. It has a 0.75% expense ratio but has produced more than 50% in gains over the past year.
NYSEMKT: CHAT
Key Data Points
Its top 10 holdings make up 43% of its total assets, with big-name tech giants filling the list. Alphabet (GOOGL 1.77%) (GOOG 1.71%), Nvidia, and Broadcom are the top three stocks, making up roughly 20% of the fund's entire assets.
The fund includes chipmakers, but there is a stronger focus on AI software like Meta Platforms (META 1.09%) and Palantir (PLTR 0.65%).
4. iShares AI Innovation and Tech Active ETF (BAI)
The iShares AI Innovation and Tech Active ETF (BAI 1.38%) has a 0.55% expense ratio and delivered a 31% return over the past year. The top-heavy fund allocates more than half of its capital into the top 10 holdings and places a strong emphasis on big tech.
Broadcom, Nvidia, and Microsoft (MSFT 1.07%) are the top three positions. The fund commits more than 80% of its capital to large-cap stocks, with only 1% of the fund's assets in small-cap stocks.
BAI is one of the easiest ways to ride the AI wave without the volatility that comes from following smaller AI stocks like WGMI.
5. ROBO Global Artificial Intelligence ETF (THNQ)
AI chips and software have received much of the gains so far, but robotics could power future gains. Self-driving cars and humanoid robots require artificial intelligence. While investors can continue to make money with chipmakers, investing in robotic stocks can also be lucrative.
The ROBO Global Artificial Intelligence ETF (THNQ 0.41%) prioritizes new market opportunities that will arise from the development and application of artificial intelligence. It has a 0.68% expense ratio but has gained roughly 30% over the past year.
THNQ has 54 holdings, with some big tech names in the top 10 positions. However, the ETF's top holdings also include a few unique names like Lumentum Holdings (LITE 2.22%), Nebius (NBIS +5.57%), and Lam Research (LRCX 0.81%).
It's more diversified, with only 28% of its capital going toward its 10 largest positions, and one-third of its assets are in mid-cap stocks. AI ETFs tend to put the majority of their funds into large-cap tech stocks while ignoring small-cap and mid-cap opportunities, making THNQ an outlier.
