The leading AI-themed ETF, the Global X Artificial Intelligence & Technology ETF (ticker: AIQ), is attracting significant market attention with its impressive performance. As of September 23, 2025, the fund has delivered a cumulative return of 225% since its inception in May 2018, significantly outperforming the S&P 500’s 144% gain and the Nasdaq Composite’s 205% rise over the same period.
The ETF closed slightly down 0.83% at $49.25 on that day, with assets under management reaching $5.26 billion.
Functioning as an all-in-one “toolkit” for AI investment, AIQ employs a unique multi-sector penetration strategy.
This “borderless” investment philosophy stems from the fund’s view that AI’s influence permeates various industries. It argues that innovation derives both from established tech giants and emerging disruptors across the broader market, thus not limiting itself to traditional technology sector classifications.
From a valuation perspective, AIQ shows notable advantages compared to major broad-based indices. Its Price-to-Earnings (P/E) ratio stands at 25.5x, lower than the S&P 500’s 30.8x and the Nasdaq’s 32.9x, suggesting attractive valuation. Regarding cost, the fund has an annual expense ratio of 0.68%. While this is slightly higher than the median ratio of 0.56% for actively managed ETFs, it remains within a reasonable range.
Furthermore, the ETF’s current price of approximately $49.25 trades close to its Net Asset Value (NAV) per share of $48.74, indicating it is not trading at a significant premium.
Despite its strong performance, AIQ has lagged behind the Invesco QQQ Trust (ticker: QQQ), which focuses more narrowly on tech giants.
Since AIQ’s launch, QQQ—which tracks the Nasdaq-100 Index—has achieved a cumulative return of 252%. Its success hinges on three key advantages: Firstly, QQQ concentrates its bets on pure-play AI leaders like NVIDIA and Microsoft, providing focused exposure to the fastest-growing segments. Secondly, its passively managed structure results in significantly lower operating costs, with an expense ratio of just 0.20%. Most importantly, its strategy zeroes in on high-growth technology behemoths, avoiding the slower-growth peripheral assets found in AIQ’s portfolio, thereby achieving superior returns.
Professional analysis suggests that while AIQ offers a convenient one-stop solution for AI investment, its allocation to non-core sectors might dilute potential gains. For investors seeking more targeted exposure to the AI theme, QQQ, with its focus on core tech giants, may offer better value. As AI investing enters a phase requiring more precision, blindly chasing an “AI” label appears less effective than strategically targeting the technology’s core enablers.
