Artificial intelligence (AI) is undeniably one of the most groundbreaking innovations of our time, and it’s easy to see why. It’s a game changer, transforming industries and unlocking opportunities for those willing to seize them. From driving innovation to boosting productivity, the advancements we’re seeing are nothing short of revolutionary.

As a result, the time looks ripe to invest in top-performing AI-powered ETFs Global X Robotics & Artificial Intelligence ETF (BOTZ), First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT), and Robo Global Artificial Intelligence ETF (THNQ). These ETFs provide diversified exposure to this rapidly growing sector and are poised to deliver long-term portfolio growth.

The convergence of AI and robotics is enabling systems capable of performing human-like tasks with precision and efficiency. Whether it’s automating production lines, optimizing logistics, or even doing surgery, these advancements are pushing the boundaries of innovation. With AI market revenues predicted to surge from $243.70 billion this year to $826.70 billion by 2030 at an impressive CAGR of 27.7%, the prospects of this sector look promising.

The ripple effects extend beyond individual industries. As businesses increasingly integrate AI into their IT systems, global IT spending is expected to rise by 9% in 2025, exhibiting the growing reliance on AI to streamline operations, reduce costs, and drive productivity.

For those looking to diversify their investments in AI, ETFs offer a strategic way to gain exposure to a wide array of companies leading advancements in this space while helping you spread risks tied to investing in individual stocks. Plus, they’re a cost-effective way to tap into some of AI’s most exciting areas, like generative AI, robotics, and data analytics.

With that in mind, let’s look at the fundamentals of the three Technologies Equities ETFs, starting with number three.

ETF #3: First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT)

ROBT is an exchange-traded fund launched and managed by First Trust Advisors L.P., designed to track the performance of companies engaged in the artificial intelligence and robotics segments of the technology, industrial, and other economic sectors. The fund yields the performance of the Nasdaq CTA Artificial Intelligence and Robotics Index.

With $441.20 million in assets under management (AUM), ROBT’s top holdings are Valeo SE with a 2.51% weighting, followed by Hexagon AB (Class B) with a 2.32% weighting, and Meta Platforms, Inc. (META) with a 2.12%. The fund has a total of 102 holdings.

It has an expense ratio of 0.65%, higher than the category average of 0.59%. It currently has a NAV of $45.29. ROBT’s fund inflows came in at $9 million over the past month.

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 robust CAGR of 111.5% over the past three years.

ROBT has gained 4.5% over the past three months and 9.1% over the past nine months to close the last trading session at $45.73.

ROBT’s bright prospects are reflected in its POWR Ratings. The ETF has an overall rating of B, translating to a 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 a B for Trade. Among the 119 ETFs in the A-rated Technology Equities ETFs group, it is ranked #65. Click here to see ROBT’s rating for Peer.

ETF #2: Robo Global Artificial Intelligence ETF (THNQ)

Launched and managed by Exchange Traded Concepts, LLC, THNQ invests in stocks of companies across the information technology, software and services, systems software, software research, and artificial intelligence sectors. The fund seeks to track the performance of the ROBO Global Artificial Intelligence Index using a full replication technique.

As of January 15, THNQ had $149.10 million in AUM and an NAV of $49.86. Its expense ratio of 0.68% compares to the category average of 0.59%.

The fund’s top holdings include Ambarella, Inc. (AMBA) with a 2.51% weight, Alphabet Inc. (GOOGL) with a 2.36% weight, and Cloudflare, Inc. (NET) with a 2.34% weight. It has 57 holdings in total.

Over the past three months, the fund’s net inflows came in at $4.84 million. THNQ has gained 21.6% over the past nine months and 23.4% over the past year to close the last trading session at $50.41.

It’s no surprise that THNQ has an overall A rating, which equates to a Strong Buy in our proprietary rating system. It also has an A grade for Trade and Buy & Hold and a B for Peer.

THNQ is ranked #32 out of 119 ETFs in the same A-rated group. Click here to see all the THNQ ratings.

ETF #1: Global X Robotics & Artificial Intelligence ETF (BOTZ)BOTZ seeks to provide market-cap-selected and weighted exposure to companies likely to benefit from the growing adoption and utilization of robotics and artificial intelligence, including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles. It tracks the Indxx Global Robotics & Artificial Intelligence Thematic Index.

The fund has a total of 47 holdings. Its top holdings include NVIDIA Corporation (NVDA) with a 13.26% weighting, Intuitive Surgical, Inc. (ISRG) at 11.02%, followed by ABB Ltd. and Keyence Corporation with 9% and 6.77% weightings, respectively.

The fund has an expense ratio of 0.68% compared to the category average of 0.65%. Over the past month, BOTZ’s fund inflows came in at $15.74 million.

As of January 15, BOTZ had assets under management of $2.56 billion and an NAV of $32.35. The fund has gained 10.4% over the past nine months and 13.2% over the past year to close the last trading session at $32.59.

BOTZ’s POWR Ratings reflect this robust outlook. It has an overall rating of B, equating to a Buy in our proprietary rating system.

It has an A grade for Trade and Buy & Hold. Of the 119 ETFs in the Technology Equities ETFs group, it is ranked #12.

Beyond what we stated above, we have also given BOTZ a grade for Peer. Get all BOTZ ratings here.

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BOTZ shares rose $0.40 (+1.23%) in after-hours trading Thursday. Year-to-date, BOTZ has gained 2.00%, versus a 0.95% rise in the benchmark S&P 500 index during the same period.

About the Author: Shweta Kumari

Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions. More...

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