20 Best-Performing AI ETFs for July 2024
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AI ETFs are tradable baskets of AI stocks — which are shares of companies that work on AI development.
Our AI ETF list includes broad technology ETFs, AI-specific thematic ETFs, and AI-powered active trading ETFs.
You'll need a brokerage account to invest in AI ETFs. It's also important to pick an ETF that matches your investing goals.
Artificial intelligence (AI) is one of the biggest trends of the 2020s. Accounting and consulting firm PwC wrote that AI could contribute $15.7 trillion to the global economy by the end of this decade in a report first published in 2017 and last modified in 2023.
AI stocks provide one way for investors to try to profit from the growth of AI technology, but funds are also an option. Below, we’re unpacking AI exchange-traded funds (ETFs) and looking at the top AI ETFs by one-year performance.
» Check out some of the best-performing ETFs
What are AI ETFs?
AI ETFs are publicly traded baskets of AI stocks, which, in turn, are shares of publicly traded companies that are involved with AI development in some way.
Some AI companies, like Microsoft (MSFT), develop AI software and large language models (e.g., ChatGPT). Others, like NVIDIA (NVDA), produce hardware important to industrial AI, such as graphics processing units.
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Best AI ETFs by one-year performance
Below are the top-performing ETFs that either have substantial exposure to AI stocks or have fund managers that use AI to inform their trading decisions, as ranked by one-year performance.
Company | Performance (Year) |
|---|---|
? | 46.42% |
? | 40.73% |
? | 38.29% |
? | 35.40% |
? | 33.62% |
QRAFT AI Enhanced U.S. Large Cap Momentum ETF (AMOM) | 33.51% |
Invesco AI and Next Gen Software ETF (IGPT) | 32.97% |
Invesco NASDAQ Internet ETF (PNQI) | 32.37% |
Neuberger Berman Disrupters ETF (NBDS) | 30.60% |
Spear Alpha ETF (SPRX) | 29.83% |
Global X Artificial Intelligence & Technology ETF (AIQ) | 29.03% |
Global X E-commerce ETF (EBIZ) | 28.46% |
QRAFT AI Enhanced U.S. Large Cap ETF (QRFT) | 27.26% |
First Trust Dow Jones Internet Index Fund (FDN) | 26.83% |
ROBO Global Artificial Intelligence ETF (THNQ) | 26.39% |
Defiance Quantum ETF (QTUM) | 24.99% |
Innovator Deepwater Frontier Tech ETF (LOUP) | 22.06% |
Franklin Exponential Data ETF (XDAT) | 21.85% |
iShares U.S. Consumer Focused ETF (IEDI) | 20.74% |
Clockwise Core Equity & Innovation ETF (TIME) | 20.61% |
Source: Finviz. Stock data is current as of July 1, 2024, and is intended for informational purposes only. | |
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» Interested in passive funds? Check out some of the best index funds in terms of long-term performance.
Types of AI ETFs
If you take a closer look at the AI ETFs in the table above, you’ll notice that they fall into one of several categories:
Technology ETFs: Some of the funds above are really just baskets of tech stocks. We’ve included them here because some of the largest companies in the technology sector — such as NVIDIA and Microsoft — are also key players in the AI industry.
Thematic ETFs: Other funds are specifically focused on the theme of AI. In practice, their holdings tend to look quite similar to those of general tech ETFs at the moment.
“AI-enhanced” or “AI-powered” ETFs: There’s a third type of AI ETF that bears mentioning here: Funds, such as the QRAFT AI-Enhanced US Large Cap ETF (QRFT), that are not focused on AI stocks or even technology stocks but simply use AI technology to inform their trading decisions.
How to buy AI ETFs
You’ll need an investment account — such as a brokerage account or an individual retirement account (IRA) — to invest in AI ETFs.
Once you’ve opened such an account and verified that your AI ETF of choice is available, you’ll need to figure out what goals you’re looking to accomplish by investing in AI ETFs and how they fit into your overall strategy.
AI technology has real economic potential, but if you’re investing the whole balance of your IRA into AI ETFs, then you’re literally betting your retirement on that technology's success. Investment diversification can protect you from the risks of putting all of your eggs in one basket, while still allowing you to allocate small portions of your portfolio toward up-and-coming trends like AI. S&P 500 ETFs can be an easy way to add diversification to a portfolio.
If you’re looking to make a long-term bet on the potential of AI technology, then you may be content to just buy an AI ETF with a market order and hold it long term.
If you’re looking to day trade AI ETFs, on the other hand — say, to take advantage of short-term market fluctuations related to the trendiness of AI stocks — then you may want to consider using limit orders to get in and out of the trade at a favorable price.
Neither the author nor editor held positions in the aforementioned investments at the time of publication.
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