The year 2024 was a strong one for stocks involved in artificial intelligence (AI), and winners could be found in a variety of areas. For example, Nvidia and Broadcom helped lead the AI chip and infrastructure space higher, while Palantir Technologies was a huge winner in the AI software sector. Amazon and Alphabet helped lead the charge in the cloud computing space.
For investors looking to invest in AI stocks without trying to pick out the next individual winners, there are a number of solid AI-focused exchange-traded funds (ETF) to invest in for 2025. Let's look at three good options to consider.
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Roundhill Generative AI & Technology ETF
The Roundhill Generative AI & Technology ETF (NYSEMKT:CHAT) is an actively managed ETF, meaning that it is managed by a team of investment professionals who can buy and sell stocks within its portfolio based on their research. It currently has 51 holdings, and over 90% of its portfolio is in large-cap stocks that have market caps of $10 billion or more.
The ETF is fairly new, starting in May 2023. It has been a strong performer in 2024, up about 31%. It has an expense ratio of 0.75%, or $75 annually per $10,000 invested.
The Roundhill ETF currently has a nice, well-rounded portfolio of top holdings across the AI space that cover all aspects of AI, including semiconductors, cloud computing, system integrators, and software. If you want a mixture of stocks benefiting from AI, this is a great ETF to start with.
Its top holdings as of Dec. 29, 2024, were:
| Name | Ticker | Weighting |
|---|---|---|
| Nvidia | NVDA | 7.56% |
| Alphabet | GOOGL | 5.70% |
| Microsoft | MSFT | 5.29% |
| Meta Platforms | META | 4.17% |
| Taiwan Semiconductor Manufacturing | TSM | 3.71% |
| Dell Technologies | DELL | 3.51% |
| Hewlett Packard Enterprise | HPE | 3.23% |
| Palantir Technologies | PLTR | 3.05% |
| Broadcom | AVGO | 3.04% |
| Arista Networks | ANET | 3.02% |
KraneShares Artificial Intelligence & Technology ETF
The KraneShares Artificial Intelligence & Technology ETF (NASDAQ:AGIX) is a fund that started in July 2024, so it has a very limited history. The fund largely tracks the Solactive Etna Artificial General Intelligence Index, although it can also hold shares in private companies outside of the index as well.
The Solactive Etna Artificial General Intelligence Index includes stocks based on a proprietary AI Exposure Score that is meant to determine how well prepared a company is to benefit from AI. The index includes companies with market caps above $2 billion involved in hardware, infrastructure, and applications.
While the ETF is newer, I really like its portfolio heading into 2025. It has exposure to cloud computing providers and the top chipmakers in Nvidia and Broadcom. It also has some solid AI software companies, which could be the next stage of AI winners. However, its 1% expense ratio is on the high side.
Its top 10 holdings as of Dec. 27, 2024, were:
| Name | Ticker | Weighting |
|---|---|---|
| Microsoft | MSFT | 7.53% |
| Meta Platforms | META | 7.50% |
| Amazon | AMZN | 5.20% |
| Nvidia | NVDA | 4.64% |
| Apple | AAPL | 4.63% |
| Salesforce | CRM | 3.93% |
| ServiceNow | NOW | 3.70% |
| Tesla | TSLA | 3.67% |
| Alphabet | GOOGL | 3.58% |
| Broadcom | AVGO | 3.28% |
Global X Artificial Intelligence & Technology ETF
The oldest of the ETFs, the Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ), has been around since May 2018. It tracks the Indxx Artificial Intelligence & Big Data Index, which includes companies set to benefit from AI. It has an expense ratio of 0.68%.
The ETF adds a bit of diversity from your typical AI ETF with more of a focus on software, which is about 40% of its portfolio. Meanwhile, semiconductor stocks, which tend to make a large percentage of most ETF funds, represent less than 15% of its holdings. Nvidia is only its 13th-largest holding at 3%. It also adds some international exposure, with companies outside the U.S. representing nearly 30% of its holdings.
If you're looking to build a portfolio of a few AI ETFs, the Global X Artificial Intelligence ETF is a nice option since it is still investing in AI-related stocks, but its make-up is different. Meanwhile, the ETF has been a solid performer over the years, with an average annual return of nearly 18% over the past five years as of the end of November.
Its top-10 holdings as of Dec. 27, 2024, were:
| Name | Ticker | Weighting |
|---|---|---|
| Tesla | TSLA | 4.74% |
| Broadcom | AVGO | 4.00% |
| Netflix | NFLX | 3.84% |
| ServiceNow | NOW | 3.83% |
| Saleforce | CRM | 3.58% |
| Cisco | CSCO | 3.48% |
| Meta Platforms | META | 3.33% |
| IBM | IBM | 3.28% |
| Amazon | AMZN | 3.25% |
| Oracle | ORCL | 3.20% |
AI ETFs
While AI has helped power the market in 2024, the technology still appears to be in its early innings. AI infrastructure stocks have tended to be the big early winners, but there is an expectation that other areas of AI, such as software, could be the next group of stocks to benefit. As such, AI continues to look like a strong theme to invest in for 2025, and these ETFs are a nice way to get some diversified AI exposure.
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