Exchange-traded funds (ETFs) focused on the artificial intelligence (AI) theme have experienced rapid development recently, reflecting the market’s high level of attention towards investment opportunities in the AI sector. Among the numerous related products, by screening for ETFs with “AI” or “Artificial Intelligence” in their names and eliminating those with assets under management below $200 million, one can outline the current market’s main landscape. It is worth noting that although the VanEck Semiconductor ETF does not directly indicate an AI connection in its name, it is also included in the observation scope due to the critical role of semiconductors as AI infrastructure.
Since the beginning of this year, the five top-performing AI-themed ETFs include the Roundhill Generative AI & Technology ETF (CHAT), VanEck Semiconductor ETF (SMH), WisdomTree Artificial Intelligence and Innovation Fund (WTAI), ROBO Global Artificial Intelligence ETF (THNQ), and Global X Artificial Intelligence & Technology ETF (AIQ). Beyond short-term performance, long-term investment value deserves even greater attention. Among these, the VanEck Semiconductor ETF and the Roundhill Generative AI & Technology ETF represent two distinct investment logics and hold significant analytical value.
The VanEck Semiconductor ETF was established in 2011 and employs an index-based investment strategy, tracking the performance of an index covering the global semiconductor industry chain. The fund holds 25 stocks listed on major US exchanges, with an expense ratio of 0.35%, which is considered reasonable for sector-themed funds. Its top five holdings include NVIDIA (NVDA), Taiwan Semiconductor Manufacturing Company (TSM), Broadcom (AVGO), Advanced Micro Devices (AMD), and Micron Technology (MU). These companies collectively form the hardware foundation for artificial intelligence. NVIDIA and AMD dominate in the graphics processing unit space, Broadcom focuses on custom AI chips, Micron Technology provides memory solutions, and TSMC handles the chip manufacturing process, together forming a complete AI computing power support system.
The Roundhill Generative AI & Technology ETF (CHAT) was launched in May 2023. It employs an active management strategy, focusing on investing in companies actively participating in the development of generative artificial intelligence. The fund holds 44 stocks with an expense ratio of 0.75%, reflecting the typical characteristics of an actively managed fund. Its top five holdings include NVIDIA (NVDA), Alphabet (GOOG/GOOGL), SK Hynix (SK), Microsoft (MSFT), and AMD (AMD). Microsoft and Alphabet provide generative AI training capabilities through their cloud computing services and deeply integrate related technologies into their product ecosystems. Notably, Microsoft’s strategic partnership with OpenAI further strengthens its strategic position in the generative AI field. SK Hynix, as a memory chip supplier, benefits from the growing demand for data storage.
These two ETFs provide investors with differentiated paths to participate in the development of artificial intelligence from the two dimensions of hardware infrastructure and software application innovation. The Semiconductor ETF places greater emphasis on the underlying support for AI, while the Generative AI ETF focuses more on value realization at the technology application end, together forming a complete picture of AI investment.
