Artificial intelligence (AI) is revolutionizing multiple industries, creating exciting opportunities for investors through ETFs focused on AI-driven businesses. These ETFs capitalize on AI’s transformative potential, ensuring consistent and innovation-led growth. By targeting energy-efficient AI models, they also align with sustainable investment trends.

Given this dynamic backdrop, investors might consider robust AI-powered ETFs, such as Robo Global Artificial Intelligence ETF (THNQ), First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT), and the Global X Robotics & Artificial Intelligence ETF (BOTZ) for solid returns in 2025.

This year, the AI market is projected to reach $243.70 billion, with a remarkable CAGR of 27.7%, driving its value to $826.70 billion by 2030. This growth reflects the increasing adoption of AI across industries. Sectors like healthcare, quantum computing, and ethical AI are poised to thrive, while AI’s widespread integration supports diversified ETF portfolios with strong long-term growth potential.

On top of it, AI is pivotal in today’s digital business landscape, streamlining complex tasks across IT, finance, supply chains, and sales to enhance efficiency and productivity. With global IT spending projected to grow by 9% in 2025, up from the low 8% range in 2024, companies are increasingly embracing AI for high-value functions, solidifying its role as a transformative force and a promising sector to watch.

Given this favorable backdrop, let’s evaluate the three Technology Equities ETFs picks, starting with number three.

ETF #3: Robo Global Artificial Intelligence ETF (THNQ)

THNQ is an exchange-traded fund launched and managed by Exchange Traded Concepts, LLC. It invests in public equity markets globally. The fund targets stocks of companies in information technology, software and services, systems software, software research, and artificial intelligence sectors. It invests in both growth and value stocks across diverse market capitalizations. The fund seeks to track the performance of the ROBO Global Artificial Intelligence Index using a full replication technique.

With $155 million in AUM, the fund has a total of 57 holdings. THNQ’s top holding is Ambarella, Inc. (AMBA) with a 2.51% weighting, followed by NVIDIA Corporation (NVDA) with a 2.39% weighting, and Alphabet Inc. (GOOGL) with 2.32%.

THNQ has an expense ratio of 0.68%, higher than the category average of 0.58%. It currently has a NAV of $49.98. Its fund inflows came in at $3.62 million over the past six months.

THNQ has gained 15% over the past nine months and 23.8% over the past year to close the last trading session at $50.03.

THNQ’s strong outlook is reflected in its POWR Ratings. The ETF has an overall rating of A, translating to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

It has an A grade for Buy & Hold and Trade. It is ranked #36 out of 119 ETFs in the Technology Equities ETFs group. To access all the POWR Ratings for THNQ, click here.

ETF #2: First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)

ROBT is an exchange-traded fund launched and managed by First Trust Advisors L.P. The fund invests in public equity markets, targeting stocks of companies in information technology, software and services, systems software, automation products and services, software research, and artificial intelligence sectors. It invests in both growth and value stocks across diverse market capitalizations. The fund seeks to track the performance of the Nasdaq CTA Artificial Intelligence and Robotics Index using a full replication technique.

With $459.80 million in assets under management (AUM), ROBT’s top holding is Mobileye Global, Inc. (MBLY) with a 2.16% weighting, followed by Meta Platforms, Inc. (META), with a 2.15% weighting, and Palantir Technologies Inc. (PLTR), with 2.08%. It has a total of 102 holdings.

It has an expense ratio of 0.65%, higher than the category average of 0.58%. It currently has a NAV of $45.45. ROBT’s fund inflows came in at $4.58 million over the past year.

The fund’s annual dividend of $0.31 yields 0.68% on the current share price. Its four-year average yield is 0.22%. Moreover, its dividend payouts have increased at a CAGR of 111.5% over the past three years.

ROBT has gained 4% over the past three months and 4.6% over the past six months to close the last trading session at $45.23.

ROBT’s POWR Ratings reflect this promising outlook. The ETF’s overall A rating equates to a Strong Buy in our proprietary rating system.

ROBT has an A grade for Buy & Hold and Trade. It is ranked #25 in the same group. Click here to access all of ROBT’s POWR Ratings.

ETF #1: Global X Robotics & Artificial Intelligence ETF (BOTZ)

BOTZ is an exchange-traded fund launched and managed by Global X Management Company LLC. The fund invests in public equity markets in developed regions globally. It targets stocks of companies involved in the development of robotics and artificial intelligence, including those working on industrial robots, automated inventory management, unmanned vehicles, voice/image/text recognition, and medical robots or robotic instruments. The fund aims to track the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index using a full replication technique.

With $2.69 billion in assets under management (AUM), BOTZ’s top holding is NVIDIA Corporation (NVDA) with a 14.15% weighting, followed by Intuitive Surgical, Inc. (ISRG), with a 10.54% weighting, and Dynatrace, Inc. (DT), with 4.55%. BOTZ has a total of 47 holdings.

BOTZ has an expense ratio of 0.68%, higher than the category average of 0.65%. It currently has a NAV of $32.67. Its fund inflows came in at $40.63 million over the past month.

The ETF pays an annual dividend of $0.05, which yields 0.15% on the current price. It has a four-year average dividend yield of 0.19%.

BOTZ has gained 16.9% over the past year and 5.3% over the past nine months to close the last trading session at $32.39.

BOTZ’s POWR Ratings reflect its promising prospects. The ETF’s overall A rating equates to a Strong Buy in our proprietary rating system.

BOTZ has an A grade for Buy & Hold and Trade. In the Technology Equities ETFs group, it is ranked #13. Click here to access all of BOTZ’s POWR Ratings.

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BOTZ shares were trading at $32.39 per share on Thursday afternoon, down $0.17 (-0.52%). Year-to-date, BOTZ has gained 1.38%, versus a 0.58% rise in the benchmark S&P 500 index during the same period.

About the Author: Abhishek Bhuyan

Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments. More...

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