Investors can multiply their money with the right AI ETFs and stocks.
Artificial intelligence (AI) stocks have taken center stage as some of the best performers on the market. AI exchange-traded funds (ETFs) offer a way for investors to gain exposure to leading companies in this transformative sector, many of which have outpaced the S&P 500 over the last five years. With ongoing advancements in technology, including humanoid robots and self-driving cars, industry leaders stand to benefit from soaring demand for innovative products and services. Here are some top AI ETFs to consider for substantial growth over the next five years.
Image source: Getty Images.
iShares Semiconductor ETF (SOXX)
The iShares Semiconductor ETF (SOXX 3.70%) tracks the performance of leading AI chipmakers, comprising 31 different stocks. Major players like Broadcom, Advanced Micro Devices, and Nvidia dominate the fund’s top ten holdings, making up nearly 60% of its total assets.
AI chips are pivotal for powering AI models and are essential for various future innovations, including new surgical tools and robots. Increased demand in these sectors will subsequently boost the need for AI chips, promising a robust forward trajectory for the iShares Semiconductor ETF. With a reasonable 0.34% expense ratio, investors can retain most of their profits.
CoinShares Bitcoin Mining ETF (WGMI)
At first glance, the CoinShares Bitcoin Mining ETF (WGMI 5.06%) may not seem like a direct play on AI. However, many of its holdings are transitioning to provide critical infrastructure for AI, addressing energy challenges while securing multi-billion-dollar contracts with big tech firms. As major players increase their AI budgets for 2026, demand for these miners should continue to rise.
Though the ETF launched in 2022 during a turbulent market, it has rebounded impressively, rallying by 84% this year alone. While it features a 0.75% expense ratio, the fund is still managing to generate high returns, thanks to a focused selection of just 23 stocks, heavily weighted towards its top ten holdings including Cipher Mining, Iren, and TeraWulf, which collectively account for about 45% of the fund’s assets.
Global X Artificial Intelligence & Technology ETF (AIQ)
The Global X Artificial Intelligence & Technology ETF (AIQ 1.80%) comprises prominent tech beneficiaries such as Alphabet, Broadcom, and Advanced Micro Devices, alongside numerous stocks from the famed “Magnificent Seven.” This ETF demonstrates that investors need not seek out small, niche AI companies to achieve substantial growth — many major players have already excelled in this arena.
Over the past five years, AIQ has achieved a commendable annualized return of 14.2%, accelerating to an impressive 34% over the last three years. This performance comes with a 0.68% expense ratio, reflecting the trend of elevated fees for AI ETFs, yet the potential rewards seem to outweigh the costs.
iShares Future AI & Tech ETF (ARTY)
The iShares Future AI & Tech ETF (ARTY 2.79%) targets both chipmakers and AI software stocks, with many holdings accentuating the potential of big tech investments. This ETF heavily favors the “Magnificent Seven,” boasting a robust allocation of 42% to its top 10 stocks, with digital infrastructure leader Vertiv as its largest holding, representing 6% of the portfolio.
The underlying logic mirrors that of the Global X ETF, where leading technology firms harness their substantial capital to explore lucrative AI opportunities, often resulting in enhanced revenue growth.
Ark Innovation ETF (ARKK)
The Ark Innovation ETF (ARKK 3.04%) is highly concentrated on AI, with Tesla covering approximately 12% of the portfolio. The anticipation surrounding Tesla’s humanoid robots illustrates the transformative impact this technology may have, not unlike the revolutionary transitions we witnessed with the smartphone and television.
The potential for substantial returns is supported by ARKK’s rollercoaster history: while it boasts an annualized ten-year return of 15.6%, its five-year return has been less favorable at -7.8%. However, its three-year annualized return stands at 31.6%, signifying a favorable trajectory that aligns with the present AI rally.
Can they double your money in five years?
Investors aiming to double their returns in five years would require an average annual compound return of approximately 14.5%. Notably, each of these ETFs has significantly surpassed that threshold over the past year, with even the lowest gain recorded at 22%. While past performance does not guarantee future outcomes, these funds invest strategically in top-tier technology companies. Such factors greatly enhance the likelihood of achieving outperformance and thus, the potential for doubling an investor’s return is promising.
