As excitement around artificial intelligence grows, asset managers are launching an array of AI-focused exchange-traded funds (ETFs) to help investors gain exposure to the tech sector, despite uncertainty over which companies will lead long term.
Morningstar data reveals that over one-third of the AI-branded ETFs in existence were introduced in 2024. The sector’s total assets now stand at $4.5 billion, nearing nuclear power ETFs at $5.5 billion and surpassing cannabis ETFs, which hold $1.37 billion.
“This industry’s rapid pace is driving interest,” says Daniel Sotiroff, Morningstar senior analyst, who notes the market’s excitement is reflected in Nvidia’s stock, which has surged over 200% in the past year.
Tony Kim, head of BlackRock’s technology group, expects a wide range of companies to benefit from AI’s expansion. BlackRock introduced two actively managed ETFs, the iShares A.I. Innovation and Tech Active ETF and the iShares Technology Opportunities Active ETF, to capture these evolving opportunities.
BlackRock’s Jay Jacobs highlighted that the new ETFs are actively managed, unlike the 2018 iShares Future AI & Tech ETF, which is index-linked. Kim added, “The AI landscape will keep changing in ways we can’t yet fully predict.”
We have helped 20+ companies in industries like Finance, Transportation, Health, Tourism, Events, Education, Sports.
