The AI boom has catapulted many stocks to new highs, and with the help of AI ETFs, you don’t have to guess the next winners. These funds exclusively hold AI stocks, giving investors exposure to some of the top stocks right now. They have outperformed the S&P 500 year-to-date and look poised to continue that trend for several years.
iShares Semiconductor ETF (SOXX)
The iShares Semiconductor ETF (NASDAQ:SOXX) has given investors exposure to semiconductor stocks before AI turbocharged its growth. The fund has soared by more than 150% over the past five years and is heavily concentrated in chipmaking giants.
Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), and Nvidia (NASDAQ:NVDA) make up more than one-quarter of the fund’s total assets. Its top 10 holdings make up 60% of the entire portfolio, and SOXX only has 34 holdings. It isn’t as diversified as large benchmarks like the S&P 500, but that lack of portfolio diversification has helped it outperform many indices.
SOXX has a 0.34% expense ratio, which is reasonable for its returns. It also has a 0.40% SEC yield.
CoinShares Bitcoin Mining ETF (WGMI)
The CoinShares Bitcoin Mining ETF (NASDAQ:WGMI) is a new ETF that came out in 2022, but it has almost doubled year-to-date as Bitcoin mining stocks become more popular. Many Bitcoin miners are pivoting to artificial intelligence and are uniquely positioned for the power supply shortage. Several Bitcoin miners have signed multi-year, multibillion dollar deals with tech giants while having the capacity to support additional deals.
It wouldn’t take much effort to get the key holdings of WGMI instead of buying shares in the fund. IREN (NASDAQ:IREN) and Cipher Mining (NASDAQ:CIFR) make up 40% of the fund’s total assets, and those two stocks have been doing the heavy lifting. Bitfarms (NASDAQ:BITF) is the third-largest holding, and it makes up 7.6% of the fund’s assets, demonstrating the large gap. Applied Digital (NASDAQ:APLD) is another notable holding that made the fund’s top 10 positions. It has nearly tripled year-to-date.
WGMI has a lofty 0.75% expense ratio. However, if the sector continues to deliver excellent performance, investors may not mind the high expense ratio. WGMI has roughly $350 million in total assets.
Global X Artificial Intelligence & Technology ETF (AIQ)
The Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ) has doubled over the past five years amid AI tailwinds. It has a 0.68% expense ratio and spreads $7.2 billion in assets across 88 holdings.
The fund prioritizes large-cap tech stocks that have exposure to AI, and it isn’t too top-heavy, with 35% of its assets going into its top 10 positions. Alphabet (NASDAQ:GOOG) is the largest holding, which makes up 4% of the portfolio’s total assets. Several Magnificent Seven stocks and household names like Broadcom (NASDAQ:AVGO) and Palantir (NASDAQ:PLTR) are also in the top 10, with all of those holdings making up at least 3% of AIQ.
This fund can still outperform benchmarks like the S&P 500, but the low focus on small-cap and mid-cap stocks doesn’t give it the same explosive price movements that you can find with WGMI. AIQ may be suitable for investors who want exposure to AI but don’t want to take the high-risk, high-reward route.
Top Gaining Stocks
Top Losing Stocks