Best AI ETFs to Watch: Artificial Intelligence Fund Guide

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11 Sept 26

8 min read

Are these the best AI ETFs to watch now?

AI ETFs have delivered exceptional returns as the artificial intelligence investment cycle has intensified. The 23 ETFs in the AI and big data ETF segment averaged 64.8% over the trailing year to June 2026. This guide covers the main AI ETFs available to UK investors, what each holds and the risks involved.

An AI ETF is an exchange-traded fund that invests in a basket of companies connected to artificial intelligence. These range from semiconductor companies that build the chips AI models run on (Nvidia, TSMC, Broadcom) to software companies creating large language models, cloud platforms enabling AI deployment, and enterprises integrating AI into their products. Unlike a broad market ETF, an AI ETF is a thematic fund: it concentrates on a specific investment thesis rather than the entire market.

Best AI ETFs to Watch: Artificial Intelligence Fund Guide

What is an AI ETF?

For UK investors, the relevant universe is UCITS-compliant AI ETFs listed on European exchanges. These are accessible through our stocks and shares ISA and share dealing account. US-listed AI ETFs (BOTZ, AIQ, IRBO) are not directly available to UK retail investors for direct purchase, but UCITS equivalents covering similar indices are available. Source: InvestEngine (August 2026).

AI ETF comparison: the main options for UK investors

ETF	Ticker	Index tracked	OCF	1-yr return to end-May 2026	Key characteristic
L&G Artificial Intelligence ETF	AIAG	ROBO Global AI Index	0.49%	50.93%	Best 12-month performance in the UCITS AI ETF panel; concentrated AI exposure
Xtrackers AI & Big Data UCITS ETF	XAIX	Nasdaq Global AI & Big Data	0.35%	Strong (data: Finary, June 2026)	Largest European UCITS AI ETF by AUM (>€7bn); lower OCF than peers
WisdomTree Artificial Intelligence UCITS ETF	INTL	Nasdaq CTA AI Index	0.40%	Strong	Covers AI value chain; enablers, enhancers and end users
iShares Automation & Robotics UCITS ETF	RBTX	STOXX Global Automation & Robotics	0.40%	Strong	AI-adjacent via automation and robotics; broader than pure AI
ARK Artificial Intelligence & Robotics UCITS ETF	ARCI	Morningstar Global AI Select	0.35%	Strong	Passive counterpart to active ARK strategies; ~65 concentrated holdings

Sources: Finary (June 2026); InvestEngine (August 2026); iShares product factsheet. Performance is past performance only and is not a reliable indicator of future results. OCFs are as published at time of writing and subject to change.

AI ETF sector: key facts (June 2026)

64.8%	$19.6bn	50.9%
Average 1-year return of the 23 AI and big data ETFs (ETF Central, June 2026)	Total assets under management of the AI ETF sector (ETF Central, June 2026)	L&G Artificial Intelligence ETF (AIAG) rolling 12-month return to end-May 2026 (Finary, June 2026)

L&G Artificial Intelligence ETF (AIAG)

The L&G Artificial Intelligence ETF, trading under the ticker AIAG, tracks the ROBO Global Artificial Intelligence Index. It posted the best rolling 12-month performance among the major UCITS AI ETFs at 50.93% to end-May 2026 (Finary, June 2026). AIAG concentrates on companies that derive a significant share of revenue directly from AI, rather than companies that merely use AI as a tool. Its ongoing charge of 0.49% is at the higher end of the peer group. Source: InvestEngine (August 2026).

Xtrackers AI & Big Data UCITS ETF (XAIX)

The Xtrackers AI & Big Data ETF is the largest European UCITS AI-themed ETF by AUM at over €7 billion (Finary, June 2026), a scale that provides significant liquidity and tight bid-ask spreads for UK investors. It tracks the Nasdaq Global Artificial Intelligence and Big Data Index at a competitive 0.35% ongoing charge. The large AUM gives Xtrackers XAIX more institutional credibility than smaller thematic peers. Source: Finary (June 2026).

WisdomTree Artificial Intelligence UCITS ETF (INTL)

The WisdomTree AI ETF (INTL) tracks the Nasdaq CTA Artificial Intelligence Index, designed to capture companies across the full AI value chain: AI enablers (semiconductor companies, cloud infrastructure), AI enhancers (companies that use AI to improve products) and AI end users (companies applying AI in their core business). This breadth means INTL holds a wider range of names than pure-AI alternatives, including companies across sectors using AI as an operational tool. OCF: 0.40%. Source: InvestEngine (August 2026).

How to invest in AI with an ETF

AI ETFs are accessible through our stocks and shares ISA and share dealing account. They can also be traded short-term using spread bets and CFDs for leveraged, intraday or swing trading exposure to the AI theme. Spread bet profits are generally free from CGT for UK residents.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with us. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

For investors who want more direct exposure to individual AI stocks rather than a fund, Nvidia is the most widely held single name in the AI infrastructure trade. Its dominance of the AI accelerator market is reflected in its position as the largest holding in most AI ETFs. Individual share exposure concentrates risk further than a fund; it suits investors with high conviction in a specific stock rather than the broader theme.

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Risks of AI ETFs

Concentration in Nvidia: most AI ETFs carry Nvidia as their largest single holding. As of mid-2026, Nvidia is the world's most valuable company by market cap; its share price trajectory dominates AI ETF returns. Any significant Nvidia de-rating would heavily affect the sector
Higher ongoing charges: AI ETFs charge 0.35-0.50% per year, materially more than broad market trackers at 0.07-0.22%. Over 20 years, this difference compounds significantly
Theme concentration: AI ETFs hold a narrow set of companies in a single technology theme. A broad market correction in technology, a regulatory crackdown or a failure of the AI monetisation thesis would affect all holdings simultaneously
Valuation risk: AI stocks trade at elevated price-to-earnings multiples that assume sustained, rapid earnings growth. A slowdown in AI investment by hyperscalers (Microsoft, Google, Amazon, Meta) would affect the entire ecosystem
Short track records: many AI ETFs launched in 2018-2024. Several have delivered extraordinary short-term returns driven by a specific AI investment cycle. Returns over a full market cycle, including a downturn, are unknown

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AI ETF FAQs

What is the best AI ETF for UK investors?

The best AI ETF depends on your investment objectives. For concentrated pure-play AI exposure with the strongest recent performance, L&G AI (AIAG) posted a 50.93% rolling 12-month return to end-May 2026. For the largest and most liquid fund, Xtrackers AI & Big Data (XAIX) with over €7 billion in AUM provides the deepest liquidity. For full AI value chain coverage, WisdomTree INTL tracks a broader universe. All are accessible as UCITS ETFs through our platform. This is not personal investment advice.

How do I invest in artificial intelligence ETFs in the UK?

UCITS AI ETFs including AIAG, XAIX and INTL are accessible through our stocks and shares ISA and share dealing account. Search for the ETF ticker on our platform. No dealing commission applies on eligible ETFs through the ISA. Gains and income within the ISA are permanently free from UK tax.

Are AI ETFs high risk?

Yes. AI ETFs are thematic, concentrated funds that carry significantly higher risk than broad global equity ETFs. They are dominated by technology stocks and often have Nvidia as their largest single holding. Their performance is strongly linked to the AI investment cycle, which can reverse sharply. They are best treated as a satellite allocation alongside a diversified core portfolio, not as a primary holding.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. 

Professional clients trading spread bets and CFDs can lose more than they deposit.

The value of shares, ETFs and other ETPs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.

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What is an AI ETF?

AI ETF comparison: the main options for UK investors

AI ETF sector: key facts (June 2026)

L&G Artificial Intelligence ETF (AIAG)

Xtrackers AI & Big Data UCITS ETF (XAIX)

WisdomTree Artificial Intelligence UCITS ETF (INTL)

How to invest in AI with an ETF

Invest in AI-themed ETFs or individual stocks

Risks of AI ETFs

Start investing in AI markets with IG

AI ETF FAQs

iShares Automation & Robotics UCITS ETF (RBTX)