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Investors who want AI-related exposure without choosing one company can compare AI-themed ETFs, a technology-sector ETF, and broad-market index funds. The trade-off is how specifically a fund targets AI versus how widely it spreads exposure: even a fund with many holdings can remain concentrated in a theme, a sector, or a handful of large positions. The U.S.-listed examples below range from AI-focused funds to broad large-cap exposure; compare each fund’s mandate, holdings, weights, fees, and overlap with investments you already own.
At a glance
These are different kinds of funds, not a performance ranking. Expense ratios and holdings are dated issuer figures; check the latest fund documents before investing. “Platforms” refers to the general account route for ETF shares, not a guarantee that every fund is available at every brokerage. Comparison checked November 2026.
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| Name | Best for | Key spec | Reported cost | Platforms | Checked |
|---|---|---|---|---|---|
| Global X AIQ | AI and big-data thematic exposure | 88 holdings; index includes AI products and services, big data, AI hardware, and quantum computing | 0.68% total expense ratio | U.S. brokerage accounts; availability varies | November 2026 |
| Global X BOTZ | Robotics, automation, and related AI exposure | 81 holdings; includes industrial and non-industrial robotics, drones, humanoid technology, and AI | 0.68% total expense ratio | U.S. brokerage accounts; availability varies | November 2026 |
| First Trust FAI | Exposure selected under an AI index methodology | 50 holdings; tracks the Bloomberg Artificial Intelligence Index | 0.65% total expense ratio | U.S. brokerage accounts; availability varies | November 2026 |
| Vanguard VGT | U.S. information-technology sector exposure | Tracks a U.S. information-technology index; not an AI-only mandate | Not stated in the cited figures | U.S. brokerage accounts; availability varies | November 2026 |
| Vanguard VOO | Broad large-cap U.S. stock exposure | Seeks to track a large-capitalization stock benchmark | Not stated in the cited figures | U.S. brokerage accounts; availability varies | November 2026 |
| Invesco QQQ | Nasdaq-100 exposure with substantial technology weight | 59.8% technology exposure; classified as non-diversified by Invesco | 0.18% total expense ratio | U.S. brokerage accounts; availability varies | November 2026 |
AIQ and BOTZ figures are as of November 11, 2026; FAI holdings are as of October 27, 2026 and its expense ratio as of February 2, 2026; QQQ figures are as of March 31, 2026. VGT and VOO are included for their mandates, not as AI-specific funds. The cited sources do not provide a current, comparable expense ratio for every option, so missing figures are not filled in.
These examples are U.S.-listed funds, and availability, account eligibility, and tax treatment can differ by jurisdiction and investor. The holdings and fee numbers are issuer snapshots rather than a complete live ranking. Use them to understand the kinds of differences to check, then verify current documents for the fund and account you are considering.
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What counts as an alternative to an individual AI stock?
An ETF or index fund can provide exposure to multiple companies in one investment, but the fund’s rules determine what those companies have in common. An AI-themed fund selects securities under a definition of AI or related activity; a technology-sector fund follows a sector benchmark; a broad-market fund follows a wider stock-market benchmark. These approaches can overlap, but they are not interchangeable.
For example, AIQ’s index covers firms positioned around AI products and services, big-data applications, AI hardware, and quantum computing. BOTZ’s mandate also reaches robotics and automation, unmanned vehicles and drones, non-industrial robotics, and humanoid technology. FAI tracks the Bloomberg Artificial Intelligence Index, which uses revenue and theme assessments plus eligibility screens.
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsBy contrast, Vanguard VGT tracks a U.S. information-technology index, while VOO seeks to track a large-capitalization stock benchmark. Neither has an AI-only mandate. QQQ is another index-based alternative, but its 59.8% technology allocation reported by Invesco as of March 31, 2026, shows that an index fund can still carry substantial sector exposure.
This distinction matters when deciding what “AI exposure” means to you. A thematic methodology might include companies because of AI products, services, hardware, or adjacent activities; a robotics-and-AI approach has an explicit automation dimension; and a technology-sector benchmark uses a sector classification rather than an AI screen. A large-cap benchmark, in turn, is intended to represent a broader slice of companies rather than target AI. The fund name alone does not tell you the exact mix or how much any one company contributes.
Also distinguish the investment strategy from the fund structure. “Index fund” describes a strategy that tracks an index, while “ETF” describes shares that trade on an exchange. The examples here include index-tracking ETFs, but those labels answer different questions: what the portfolio is designed to follow, and how investors buy and sell shares. Review the specific product documents for the benchmark and trading details.
How should you choose between an AI fund, a sector fund, and a broad index?
Start with the kind of exposure you actually want, then examine how the fund implements it. A more specific theme can make the portfolio’s connection to AI clearer, but can also leave it more exposed to the fortunes of that theme. A broad index reduces dependence on an AI screen but may provide less concentrated exposure to AI-related companies.
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- Consider a thematic AI fund if you specifically want a rules-based basket of companies associated with AI and accept that the fund’s definition, holdings, and weights may differ from your own idea of the AI industry.
- Consider a robotics-and-AI fund if automation and robotics are part of the exposure you seek. Check whether its holdings reflect those activities rather than assuming it will resemble a software- or semiconductor-focused portfolio.
- Consider a technology-sector fund if you want U.S. information-technology exposure more broadly, rather than a fund screened specifically for AI. A sector fund can still be concentrated and may fluctuate more sharply than the overall stock market; Vanguard explicitly warns of this risk for sector ETFs.
- Consider a broad large-cap index fund if your priority is exposure to a wider group of large U.S. companies rather than an AI theme. It will not guarantee a particular level of AI exposure; inspect its current holdings and sector weights.
- Look carefully at QQQ if you are treating it as a broad alternative. Invesco reported 59.8% technology exposure and a non-diversified classification as of March 31, 2026. Invesco’s fund materials say, “The Fund is non-diversified and may experience greater volatility than a more diversified investment.”
Do not assume that a fund with dozens of holdings is broadly diversified. The holdings may cluster in one sector, theme, country, or a small number of large positions. Diversification does not guarantee profit or eliminate the risk of loss.
One practical way to make the choice less abstract is to write down the role you want the new holding to play. If the aim is a direct thematic tilt, compare the AI definitions and holdings of thematic products. If the aim is broader technology exposure, compare sector mandate and concentration. If the aim is to avoid relying on a single theme, examine broad-market exposure and accept that it will not promise a particular AI allocation. This is a comparison framework, not a recommendation for a particular allocation.
How do the AI funds differ?
AIQ, BOTZ, and FAI all offer thematic exposure, but their index approaches are not identical. Their reported holdings counts and expense ratios provide a starting point—not a complete measure of diversification, risk, or value.
| Fund | Mandate and selection lens | Reported holdings | Reported expense ratio |
|---|---|---|---|
| AIQ | AI products and services, big data, AI hardware, and quantum computing | 88 as of November 11, 2026 | 0.68% as of November 11, 2026 |
| BOTZ | Robotics, automation, unmanned vehicles and drones, non-industrial robotics, humanoid technology, and AI | 81 as of November 11, 2026 | 0.68% as of November 11, 2026 |
| FAI | Bloomberg Artificial Intelligence Index, using revenue and theme assessments and eligibility screens | 50 as of October 27, 2026 | 0.65% as of February 2, 2026 |
Issuer-reported figures; checked November 2026. Holdings and fees can change. FAI’s holdings and fee figures have different as-of dates.
AIQ and BOTZ each reported a 0.68% total expense ratio, while FAI’s reported ratio was 0.65%. As a simple illustration of the fee arithmetic, 0.68% equals $6.80 per year for each $1,000 invested and 0.65% equals $6.50 per $1,000, assuming the balance stayed constant. This is not a forecast of total costs or returns: fund expenses are only one consideration, and brokerage charges or trading costs may also apply.
The difference between the cited AIQ/BOTZ and FAI expense ratios is three basis points, or $0.30 annually per $1,000 at an unchanged balance, using those dated figures. That arithmetic should not be mistaken for a reason to select one fund over another. The figures have different reporting dates, and cost is only one part of the comparison; index rules, portfolio composition, trading costs, and fit with existing investments also matter. No comparable performance statistic is provided for these funds here, so the figures do not support a performance ranking.
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Holdings counts alone do not show how much each security contributes to risk. A fund with more holdings can still have a large share of assets in its biggest positions, and two funds with similar counts can have different sector, country, and company exposures. Check the current holdings and weights rather than choosing by count or fee alone. For FAI in particular, keep the date distinction in view: its issuer-reported 50 holdings are as of October 27, 2026, while the 0.65% expense ratio is dated February 2, 2026.
For the same reason, a fee comparison should be made on a like-for-like basis. The expense ratio expresses ongoing fund expenses as a percentage of assets, but it is not necessarily the only cost of buying or holding shares. A brokerage commission, bid-ask spread, or account-level charge may affect a particular investor. Check the actual brokerage schedule and order details rather than treating the listed expense ratio as the full cost of investing.
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Use the latest fund documents and compare like with like. The data points in this article are dated snapshots, not a live ranking of funds.
- Read the mandate and index methodology. Find out what the index considers AI-related, which eligibility screens it uses, and how securities enter or leave. A label is not a substitute for the rules.
- Inspect holdings and weights. Note the largest positions and how much of the portfolio they represent. A total holding count does not reveal whether the fund is dominated by a few names.
- Check sector and geographic exposure. A thematic fund may hold companies across industries or countries, while a sector fund is defined by its sector benchmark. Confirm the actual current allocation.
- Compare the expense ratio and other costs. The expense ratio is an ongoing fund cost expressed as a percentage of assets. Also check brokerage commissions, bid-ask spreads, and any account-level charges that may apply to you.
- Measure overlap with what you already own. If your portfolio already includes individual AI-related stocks, a technology fund, or a broad index fund, the new fund may add less diversification than its name suggests. Compare holdings and weights across the whole portfolio.
- Review risks and performance context. Read the prospectus for fund-specific risks. Past performance does not predict future returns, and the cited issuer figures do not provide a comparable performance statistic across these funds.
- Confirm access and account fit. ETF shares are bought through brokerage accounts, but availability, account eligibility, dealing costs, and tax treatment depend on your brokerage, account, and jurisdiction. Confirm details before placing an order.
To apply those checks, start with the official product page and prospectus or fact sheet, then look for the fund’s current holdings, weights, and allocation breakdown. Compare the same type of figure across products and note each figure’s “as of” date. A current holdings list beside an older expense ratio is not a fully synchronized snapshot, so keep dates attached to the numbers when you make notes.
Next, compare the proposed fund against your whole portfolio rather than in isolation. If you already own a broad index fund, some companies in an AI or technology fund may already be represented there. If you own individual companies associated with AI, a themed basket may also increase exposure to names you already hold. The relevant question is not just how many holdings the new fund has, but what exposures it adds after accounting for existing positions.
ETF market prices can differ from net asset value, so a purchase price may not be exactly equal to the value of the fund’s underlying assets per share. Read the broker’s trading information and the fund’s current prospectus, and remember that you can lose principal.
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Before buying, also confirm that you can access the specific security in the intended account. Brokerage access does not mean every fund is available everywhere or in every account type. Account eligibility, dealing arrangements, and tax consequences can vary; a U.S.-listed product’s treatment may be different for an investor outside the United States. Consult applicable account and tax information rather than assuming the same rules apply to all investors.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Are index funds and ETFs the same thing?
No. “Index fund” describes an investment strategy that tracks an index; “ETF” describes a fund structure whose shares trade on an exchange. A fund can be both: the cited examples include index-tracking ETFs. Check the specific fund documents to confirm its structure, benchmark, and trading details.
That distinction is useful when comparing a product list. An index-based approach does not, by itself, mean the holdings are broad or low-risk: an index can represent a sector or a narrower group, as the QQQ example illustrates. Meanwhile, ETF describes how shares are traded, not what the fund invests in. Read both the investment objective and the structure details before treating two products as equivalents.
What is the practical takeaway?
There is no single best substitute for an individual AI stock without knowing an investor’s goals, risk tolerance, existing holdings, and account. AIQ, BOTZ, and FAI are the more directly thematic examples here; VGT broadens the lens to information technology; VOO broadens it further to a large-cap U.S. benchmark; QQQ demonstrates that an index alternative can still have pronounced technology exposure. The useful choice is the fund whose current mandate and portfolio fit the exposure you want—not simply the fund with “AI” in its name, the most holdings, or the lowest reported fee.
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Keep the comparison focused on what each fund is designed to hold, how concentrated its actual portfolio is, what it costs, and whether it overlaps with positions you already have. Those checks are more informative than a label or holdings count in isolation. No fund guarantees profits, eliminates losses, or ensures that its portfolio will move in line with any particular view of AI.
This is general educational information, not personalized investment, legal, or tax advice. Fund mandates, holdings, weights, fees, availability, and tax rules can change. Consult current issuer documents and, when appropriate, a qualified financial or tax professional.
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Frequently Asked Questions
Can I buy an AI ETF in a retirement account?
That depends on the account provider and the rules of the account. Check whether the specific fund is available in your account and whether the account’s dealing or custody charges differ from a standard brokerage account.
Will an AI ETF protect me if AI stocks fall?
No fund label or basket of holdings guarantees protection from losses. The fund can decline if its holdings or the broader market fall, and a thematic or sector-focused portfolio may be especially sensitive to developments affecting its focus.
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Tax treatment depends on your country, account type, holding period, and personal circumstances. Review the fund’s tax documents and local rules or ask a qualified tax professional before making decisions.
Can I buy less than one ETF share?
Fractional-share access depends on the brokerage and the specific security. Check your broker’s trading rules, minimum order size, and any restrictions before placing an order.
How can I tell whether an AI ETF overlaps with stocks I already own?
Compare the fund’s current holdings and weights with your individual stocks and other funds. A new ETF may repeat exposure you already have, so look at the combined portfolio rather than the fund name or holdings count alone.
The Bottom Line
Choose by mandate, actual holdings and concentration, total costs, and portfolio overlap—not by the word “AI” or holdings count alone. Thematic, sector, and broad-market funds serve different purposes, and none removes investment risk.
