As of April 2026, there are 47 AI-themed exchange-traded funds (ETFs) that have collectively attracted around $25 billion in net assets, driven by strong investor demand since their inception. While these ETFs have generally outperformed the S&P 500 since 2016, their performance varies significantly, highlighting the importance of understanding the specific strategies and holdings of each ETF before investing.
For a professional investor considering AI-themed ETFs, the key takeaway is that while these ETFs have shown popularity and inflows, they carry significant performance variability and risks. Investing in such thematic strategies might be redundant if you have a diversified portfolio like an index fund, and there's a risk that the AI theme is already priced in by the time it becomes mainstream. To ensure informed investment decisions, it's crucial to thoroughly understand the underlying assets and strategies of each ETF and have a clear exit strategy based on fundamental changes.