Best AI ETFs to watch: July picks

Why use an ETF for AI exposure?

Investing directly in individual AI stocks like Nvidia or Microsoft carries significant concentration risk. A single earnings miss or regulatory development can move an individual stock 10-20% in a session. An AI ETF spreads that risk across a basket of companies while still giving targeted exposure to the theme. For investors who want AI as a satellite position within a broader portfolio, an ETF is typically the most practical route.

Most AI ETFs available to UK investors are structured as UCITS funds, meaning they meet UK regulatory requirements and can be held in a stocks and shares ISA or SIPP, sheltering gains and income from UK tax. Understanding the differences between index funds and ETFs is useful context before choosing between AI ETF options.

AI ETFs to watch this July

The following profiles cover the most widely held and traded AI ETFs available to UK investors as of July 2026. All OCF and AUM data are sourced from provider factsheets and financial data services. This is not a recommendation to buy or sell.

1. L&G Artificial Intelligence UCITS ETF   OCF: 0.49% | AUM: £2.1bn

• What it tracks: the ROBO Global Artificial Intelligence Index, a rules-based index covering companies directly involved in AI, including AI hardware, cloud infrastructure, data analytics, machine learning platforms and AI-enabled applications. Technology accounts for approximately 74% of the portfolio.
• Top holdings: Nvidia, Microsoft, Alphabet and Meta feature prominently, alongside more specialist names in AI infrastructure and software. The fund holds approximately 70 companies.
• 2026 context: the fund has risen approximately 69% over the past 12 months, driven by Nvidia's extraordinary results and the broader AI infrastructure buildout. ISA and SIPP eligible.

2. WisdomTree Artificial Intelligence UCITS ETF   OCF: 0.40% | AUM: ~$1.23bn

• What it tracks: the NASDAQ CTA Artificial Intelligence Index, covering companies that either enhance, enable or engage AI technology. The index is researched by WisdomTree in partnership with the Consumer Technology Association and rebalanced quarterly.
• Top holdings: Nvidia, Microsoft and other mega-cap technology companies dominate, with meaningful exposure to more specialist AI names including C3.ai. Approximately 86% is in information technology.
• 2026 context: lower OCF than AIAG at 0.40%, with a more AI-specific index methodology. WTAI hit a 52-week high of $106.54 per unit as of May 2026. ISA and SIPP eligible.

3. iShares Automation & Robotics UCITS ETF   OCF: 0.40% | AUM: ~$3bn

• What it tracks: the STOXX Global Automation and Robotics Index, covering companies that generate significant revenue from robotics, automation and AI-enabled hardware. Broader than pure AI, it includes industrial automation, autonomous vehicle technology and surgical robotics.
• Top holdings: Lattice Semiconductor, Nvidia, Advantest, Bentley Systems and Sage Group are among the top 10. The fund holds approximately 86 companies across developed and emerging markets.
• 2026 context: less concentrated in software mega-caps than AIAG or WTAI, with more exposure to hardware enablers, industrials and specialist automation businesses. ISA and SIPP eligible.

4. L&G ROBO Global Robotics and Automation UCITS ETF  OCF: 0.80% | AUM: ~$500m

• What it tracks: the ROBO Global Robotics and Automation Index, covering the full robotics supply chain: automation and manufacturing, sensing and actuation, healthcare robotics and AI. One of the first robotics-themed ETFs globally.
• 2026 context: higher-cost option at 0.80% OCF, rated 7/7 on L&G's risk scale. Less correlated with the Nvidia/mega-cap AI trade than AIAG or WTAI. Suits investors with specific conviction in the physical robotics theme.

AI ETF comparison

How to buy AI ETFs in the UK

All four ETFs listed above are available to UK investors through our share dealing account, stocks and shares ISA or SIPP. They are traded on the London Stock Exchange and can be bought and sold like individual shares during market hours. The ETP guide covers the full range of exchange-traded product types, including the differences between ETFs, ETCs and ETNs.

For investors who prefer leveraged exposure to AI themes for shorter-term trading, we offer spread bets and CFDs on major AI stocks including Nvidia, Microsoft and Alphabet. These are leveraged products and carry significant risk: 68% of retail investor accounts lose money when trading spread bets and CFDs with us.

Risks of AI ETFs

• Concentration risk: all four ETFs have significant exposure to a small number of mega-cap technology companies, particularly Nvidia and Microsoft. A sharp correction in these stocks would significantly affect performance.
• Valuation risk: AI-related stocks are priced for substantial long-term growth. Any disappointment in earnings or AI adoption could trigger a sharp de-rating.
• Technology risk: a breakthrough by a competitor, a shift in AI architectures, or a new regulatory constraint could rapidly change which companies lead the sector.
• Currency risk: most AI ETFs are priced in USD or GBP and holdings are primarily US-listed companies. GBP/USD movements affect sterling returns.
• OCF drag: thematic ETFs charge higher fees than broad index trackers. Over a 10-year period, 0.40-0.80% OCF has a meaningful compounding impact on net returns relative to a 0.07% global tracker.

AI ETF FAQs