AI Exposure Without the Hype: 3 ETFs That Offer Smarter AI Bets

Key Points

• A growing number of exchange-traded funds (ETFs) aim for exposure to the AI space, but these funds are not all the same.
• Some AI ETFs remain heavily concentrated in the biggest, most popular names—like NVIDIA—while others provide a broader and more evenly distributed portfolio.
• ROBT, ARTY, and THNQ take the latter approach and have managed to outperform the market in the process.

Though it's far from a new approach, many exchange-traded funds (ETFs) aiming to provide exposure to the much-hyped artificial intelligence (AI) space tend to lean fairly heavily on a small number of big names. NVIDIA Corp. NASDAQ: NVDA, for example, is the single largest holding of the popular Global X Robotics & Artificial Intelligence ETF NASDAQ: BOTZ fund, representing nearly 12% of the entire portfolio. Even among broad-based tech ETFs like the iShares U.S. Technology ETF NYSEARCA: IYW, a company like NVIDIA represents about 17% of the fund's invested assets.

Some investors may seek out ETFs like these because they are weighted toward a handful of extremely popular names in the AI space. However, in a fast-growing and ever-shifting industry like AI, a wide net may better help investors to capture gains from lesser-known or up-and-coming companies. Fortunately, there are a number of AI-centered ETFs that focus on a broader set of names covering different aspects of the AI space.

Broad Group of Companies Involved in AI in Different Capacities

First Trust Nasdaq Artificial Intelligence and Robotics ETF NASDAQ: ROBT targets companies in AI as well as robotics and automation. Companies are classified as enablers, engagers, or enhancers of these technologies, per the Consumer Technology Association (CTA), and weighted in the fund such that those designing, building, or facilitating AI or robotics via products and software make up the majority of the portfolio.

The result is a fund with just over 100 holdings that is remarkably well diversified and includes many companies off the traditional beaten path in the AI space. As of mid-August, for example, the largest holding in the fund is robotics warehouse automation firm Symbotic Inc. NASDAQ: SYM, but this position only represents 2.4% of the full portfolio. Investors can thus turn to ROBT for access to a variety of lesser-known companies still deeply engaged in AI.

Year-to-date (YTD), ROBT has returned 9.7%, slightly above the S&P 500 and the Magnificent Seven as a group. The fund's expense ratio is 0.65%, fairly middle-of-the-road for a specialized ETF strategy such as this.

Narrower Focus, Stronger Results

While ROBT uses CTA classifications to explore firms linked to AI, the iShares Future AI & Tech ETF NYSEARCA: ARTY has its own approach. The company tracks the Morningstar Global Artificial Intelligence Select Index, which is made up of firms currently or expected to be critical to the development of generative AI, AI data and infrastructure, AI software, and AI services.

This wide net yields around 50 holdings in ARTY's basket, with the largest receiving about 5.9% of invested assets. The top ten holdings list includes lesser-known names like PTC Inc. NASDAQ: PTC and Japanese semiconductor component maker Advantest Corp. OTCMKTS: ATEYY.

ARTY's assets under management (AUM) and trading volume both beat ROBT's easily, meaning that investors are unlikely to face liquidity risks with this fund. Its expense ratio of 0.47% is also more competitive, although it should be noted that ARTY only provides exposure to about half the number of companies as ROBT. With a return of 11.4% YTD, though, ARTY may be a more compelling case on performance alone.

International Aim and Combination of Well-Known and Lesser-Known Names Yields Impressive Returns

The Robo Global Artificial Intelligence ETF NYSEARCA: THNQ also offers a wide view of AI firms, including those that enable AI applications via computing, data, and cloud services as well as applying the technology across various verticals. With a strong international focus, the 55 stocks making up THNQ's portfolio represent the developed markets broadly.

The largest holding in the THNQ group occupies about 3.3% of the portfolio. And though high-profile names like NVIDIA are included in the list of positions, THNQ also includes a number of smaller or more obscure AI companies. The mix of different companies has worked well for this fund—it has the strongest returns of 2025 among all three of the ETFs on this list, with a YTD performance of 14.5%. In exchange, investors will pay slightly more in fees. THNQ has an expense ratio of 0.68%, only slightly higher than ROBT above and still well below fees associated with actively managed funds.