High-Growth AI ETFs: Best Picks for 2024/2025

AI is changing the world. It helps run cars, write stories, and even answer questions like this one. In 2024, big companies are spending billions on AI. This means new chances for smart investors.

But picking the right AI stock is hard. That’s why we talk about AI ETFs. These are bundles of top AI companies in one place. They help lower risk while still giving us a chance to grow our money.

Let’s explore some of the best Artificial Intelligence ETFs to watch in 2024 and 2025. If you’re thinking of investing in AI, this guide is for you.

What are AI ETFs?

ETFs stand for Exchange-Traded Funds. They are like baskets that hold a group of stocks. When we buy one ETF, we invest in many companies at once. This helps spread out risk.

An AI ETF focuses on companies working with Artificial Intelligence. These include tech giants, software firms, chip makers, and robotics companies. Some even invest in startups building smart tools.

AI ETFs give us access to the fast-growing AI world. Instead of picking one company, we get a mix. That means we don’t miss out if one stock goes down, and others go up. It’s a smart and simple way to invest in AI.

Why Invest in AI ETFs?

AI is everywhere now. It’s used in phones, cars, hospitals, and even schools. Big names like Microsoft, Nvidia, and Amazon are racing to lead the AI space. In fact, Bloomberg says the global AI market may reach $1.3 trillion by 2032.

That’s why many people want to invest in AI. But buying single stocks can be risky. AI ETFs are safer. They let us invest in many companies at once.

AI ETFs are also easy to trade, just like regular stocks. They are managed by experts and keep changing to match new trends. AI is not just the future,  it’s already here with tools like ChatGPT, self-driving cars, and smart robots becoming more common.

Top High-Growth AI ETFs for 2024/2025

Let’s look at some top Artificial Intelligence ETFs making waves this year:

1. Global X Robotics & Artificial Intelligence ETF (BOTZ)

BOTZ invests in companies that make robots and smart machines. Its top holdings include Nvidia, ABB, and Intuitive Surgical.

In the past year, BOTZ has gained over 25% (as of March 2024). That’s thanks to strong AI chip demand and growth in automation.

Why is BOTZ a good pick? It gives us access to both hardware and software companies, with a global reach. It’s also one of the most popular AI ETFs out there.

2. iShares Robotics and Artificial Intelligence Multi Sector ETF (IRBO)

IRBO spreads its money across many sectors, tech, healthcare, media, and more. It has over 100 holdings, which makes it very diverse.

It’s also one of the cheapest AI ETFs with a low expense ratio of around 0.47%. That means less cost for us.

IRBO didn’t perform as strongly as BOTZ in early 2023. It saw a rebound in 2024 with better tech earnings. It’s a smart choice for those who want wide exposure and steady growth.

3. ROBO Global Robotics and Automation Index ETF (ROBO)

ROBO was one of the first ETFs to focus on robotics and automation. It chooses companies not just on size, but on how much AI they actually use. That makes it unique.

Top sectors include industrial automation, healthcare robotics, and AI software. Its performance has been steady, with long-term growth potential. ROBO is great for those who want deep tech exposure without only focusing on big names.

4. WisdomTree Artificial Intelligence and Innovation Fund (WTAI)

WTAI focuses on AI innovation. It invests in firms pushing new AI tech, from cloud AI tools to machine learning platforms.

Its holdings include companies like C3.ai, Palantir, and UiPath. While it’s newer than others, its forward-looking strategy makes it a strong pick for high-growth investors.

The risk is slightly higher, but the upside potential is too.

How to Choose the Right AI ETF

We need to think about a few things before choosing one:

• Lower is better. It means less cost for us.
• High AUM means more investors trust it.
• What companies are inside? Are they global or just U.S.-based?
• Are we okay with high risk for big gains? Or do we want more safety?

Always match the ETF with our goals. Some are for fast growth, others for slow but steady gains.

Here are a few risks to keep in mind:

• Market Volatility: Tech stocks can rise or fall fast.
• Regulations: AI rules are still being written. New laws could impact growth.
• Overhype: Some stocks may be priced too high based on future hopes.
• Sector Risk: If AI hits a slowdown, these ETFs could be affected.

We should never invest without doing homework.

Final Words

AI isn’t just a trend,  it’s a shift. Investing in AI ETFs gives us a chance to join this journey without diving into risky single stocks.

These funds offer a smart way to grow with the AI boom. We get access to top tech companies, expert management, and a safer path forward.

In the end, the goal is simple: invest wisely, and let innovation do the heavy lifting. The future is powered by AI,  and with the right ETF, we can be part of it.

Frequently Asked Questions (FAQs)

Disclaimer:

This content is for informational purposes only and does not constitute financial advice. Always do your own research before investing.