The 2 Best AI ETFs To Invest $1,000 in Right Now

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By Ronald Tech

Key Points

For investors who want to manage their own money but don’t want to deal with picking individual stocks, exchange-traded funds (ETFs) present an attractive option.

ETFs trade like stocks, but typically hold dozens or even hundreds of stocks. Generally, ETFs track an index or have another theme such as a sector, a country, or an investment style like growth or value. Artificial intelligence (AI) is one such theme, and it presents an excellent use case for an ETF.

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Investors looking to get exposure to the breakthrough technology may find it easier to do so by buying one or two ETFs that will invest in a broad range of AI stocks. Let’s take a look at two of the best options on the market today.

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1. Dan Ives Wedbush AI Revolution ETF

High-profile tech analyst Dan Ives launched his own ETF earlier this year tracking his top AI stocks called Dan IVES Wedbush AI Revolution ETF (NYSEMKT: IVES).

The fund holds 30 stocks, and its goal is to capitalize on the rapid growth of artificial intelligence by investing in companies leading the AI transformation. The ETF is an actively managed fund, meaning a manager, in this case Dan Ives, is choosing the stocks that go in it.

Currently, the top five holdings of the Ives’ ETF are Nvidia, Tesla, Microsoft, Amazon, and Meta Platforms. Given the dominance of the “Magnificent Seven,” it’s not surprising to see those stocks among the leaders, which make up about 25% of the fund. In fact, the remaining two, Apple and Alphabet, are the #6 and #7 holdings in the fund.

Additionally, the IVES ETF offers exposure to other well-known AI stocks like Palantir, Micron, and Oracle, and it even holds some small-cap stocks like Innodata, a data-labeling specialist.

Since launching in June, the ETF is up 27%. With a relatively small number of stocks in the fund, the IVES ETF looks well-positioned to take advantage of the AI boom, though it is on the pricier side for an ETF with an expense ratio of 0.75%.

2. Global X Artificial Intelligence & Technology ETF

Another ETF that offers similar exposure to the IVES ETF, but with a larger number of holdings and more diversification, is the Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ).

The AIQ has 86 holdings, and similarly to the IVES ETF, it seeks to “invest in companies that potentially stand to benefit from the further development and utilization of AI technology.”

The top five holdings on the AIQ are Alphabet, Samsung, Tesla, Advanced Micro Devices, and Apple. As you can see, there is some overlap with the IVES ETF, but the AIQ is more diversified. For both funds, about 70% of their holdings come from the information technology sector.

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AIQ has also had a strong year with the stock up 31% year-to-date, easily outperforming the S&P 500, and the AIQ has also outperformed the S&P 500 since it began in 2018. Like the IVES ETF, it also has a relatively high expense ratio at 0.68%. However, that shouldn’t deter investors considering AIQ.

Are AI stocks a buy for 2026?

While there’s been some noise about a possible bubble in AI, the core stocks in each of these ETFs are still delivering strong growth and are trading at reasonable valuations. AIQ, for example, is valued at a price-to-earnings ratio of 32, only modestly more expensive than the S&P 500.

Additionally, the growth opportunity for these companies still looks good heading into 2026 as more software companies are launching AI tools, and Nvidia CEO Jensen Huang recently said that AI was at a tipping point.

Given the outperformance of AI stocks, these two ETFs look poised to beat the market next year. If you’re looking to tap into the AI boom, those two tickers make it easy to do it and are likely to deliver strong returns.

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Jeremy Bowman has positions in Advanced Micro Devices, Amazon, Meta Platforms, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Oracle, Palantir Technologies, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

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