Artificial intelligence-themed exchange-traded funds have surged to dominate a record 19% of all US ETF trading volume. This milestone highlights how deeply AI has captivated investors, reshaping capital flows away from sectors like crypto that once led tech enthusiasm.
The category extends beyond pure AI companies to include chips, semiconductors, memory-focused funds, and even ETFs centered on South Korea, reflecting its central role in manufacturing chips. The rapid growth is striking: AI ETFs saw inflows jump from $4.2 billion in 2024 to $19 billion in 2025, a nearly fivefold increase.
Market Leaders and Trends
Currently, about 92 AI-related ETFs are listed in the US, collectively managing just over $50 billion of assets. They carry an average expense ratio of 0.74%, higher than typical broad market funds, signaling investor willingness to pay more for thematic exposure. The most prominent among them include the Global X Artificial Intelligence & Technology ETF (AIQ), VanEck Semiconductor ETF (SMH), and Roundhill Generative AI & Technology ETF (CHAT).
Since the launch of ChatGPT in late 2022, AI has moved from niche thematic investing to a central element of market strategy. The ease of creating ETFs combined with strong investor demand has led to a swift proliferation of these products. According to market analysts, this trend also draws capital away from crypto, which previously symbolized cutting-edge tech investment.
This content is for informational purposes only and should not be considered financial advice.
