Back to News
investment

Could These 5 AI ETFs More Than Double Your Money in 5 Years?

The Motley Fool
Loading...
6 min read
1 views
0 likes
Could These 5 AI ETFs More Than Double Your Money in 5 Years?

Summarize this article with:

Artificial intelligence (AI) stocks have been some of the best stocks in the market, and AI exchange-traded funds (ETFs) can give you exposure to the winners. Many of these funds have left the S&P 500 in the dust over the past half-decade, and continued tech innovations suggest that the trend can continue. As this technology expands to humanoid robots, self-driving vehicles, and other physical AI, industry leaders can benefit from soaring demand for their products and services. These are some of the top AI ETFs to accumulate that can double your money in five years. Image source: Getty Images. iShares Semiconductor ETF (SOXX) The iShares Semiconductor ETF (SOXX 3.70%) offers exposure to the leading AI chipmakers and contains 31 stocks. Broadcom, Advanced Micro Devices, and Nvidia are some of the fund's top 10 holdings, which make up almost 60% of the fund's total assets. ExpandNASDAQ: SOXXiShares Trust - iShares Semiconductor ETFToday's Change(-3.70%) $-10.97Current Price$285.23Key Data PointsDay's Range$284.43 - $298.1852wk Range$148.31 - $317.35Volume10M AI chips power AI models, but they're also the backbone for all future AI innovations, such as new surgical tools and robots. Any increased demand for these industries will translate into more demand for AI chips. Extra demand for chips is the strongest catalyst for the iShares Semiconductor ETF going forward. This ETF has a 0.34% expense ratio, which is reasonable given the returns the fund tends to generate. It's also still low enough that investors get to keep most of their profits.Advertisement CoinShares Bitcoin Mining ETF (WGMI) The CoinShares Bitcoin Mining ETF (WGMI 4.82%) doesn't sound like an AI ETF at first glance. It gives investors exposure to crypto miners, but many of these same companies are pivoting their servers to provide AI infrastructure and addressing the energy bottleneck. That positioning has helped several crypto miners sign multi-year, multibillion-dollar deals with the leading tech companies. Demand should continue to accelerate next year as tech leaders have committed to higher AI budgets in 2026. ExpandNASDAQ: WGMIValkyrie ETF Trust II - CoinShares Bitcoin Mining ETFToday's Change(-4.82%) $-1.85Current Price$36.51Key Data PointsDay's Range$36.31 - $40.2552wk Range$11.09 - $67.89Volume851K The ETF doesn't have a vast history like other funds. It was launched in 2022 and came out at one of the worst times possible, promptly losing more than 80% of its value by the end of the year. However, the fund has rallied from its 2022 lows and is now one of the hottest ETFs, with an 84% gain this year. Those high returns will be needed, since it also has a 0.75% expense ratio. The crypto mining ETF is small with only 23 stocks. Furthermore, over 80% of its capital is allocated toward its top 10 holdings. Cipher Mining, Iren, and TeraWulf make up roughly 45% of the fund's total assets. Those three crypto miners are some of the top performers of the year as they adjust to AI infrastructure and sign deals with big tech companies. Global X Artificial Intelligence & Technology ETF (AIQ) The Global X Artificial Intelligence & Technology ETF (AIQ 1.80%) is filled with AI beneficiaries like Alphabet, Broadcom, and Advanced Micro Devices. The remaining "Magnificent Seven" stocks also show up in this ETF. Investors don't have to find the smallest AI stocks to double their portfolios within five years. Many of the leading tech stocks have achieved that feat already, and AI initiatives have only made these companies stronger. Revenue growth has been accelerating for multiple big tech companies, and AI initiatives can create more business opportunities. The AI ETF has an annualized 14.2% return over the past five years, but it has been heating up recently, based on its 34% annualized return over the past three years. It has a 0.68% expense ratio, which continues the theme of higher fees for AI ETFs. iShares Future AI & Tech ETF (ARTY) The iShares Future AI & Tech ETF (ARTY 2.79%) focuses on chipmakers and AI software stocks. Magnificent Seven stocks fill this fund's portfolio, and it has 42% of its capital allocated toward its top 10 holdings. Digital infrastructure specialist Vertiv is the top holding that makes up 6% of the ETF's portfolio. ExpandNYSEMKT: ARTYiShares Future AI & Tech ETFToday's Change(-2.79%) $-1.32Current Price$46.04Key Data PointsDay's Range$46.02 - $47.5452wk Range$26.31 - $51.79Volume492K It offers a similar premise as the Global X Artificial Intelligence & Technology ETF. Big tech has the most capital to spend on AI, which makes it easier to capitalize on new opportunities. As opportunities and ideas translate into revenue growth, the Magnificent Seven can power this ETF to higher returns. More than half of the fund's stocks are large caps, and it has a 0.47% expense ratio. Ark Innovation ETF (ARKK) Arl Innovation ETF (ARKK 3.04%) focuses heavily on AI stocks, including Tesla, which is the largest position. It makes up roughly 12% of the entire portfolio. The EV maker's upcoming humanoid robots are a significant opportunity that can revolutionize the world like the TV and smartphone. That type of impact can translate into Tesla stock doubling in the next five years and bringing the Ark Innovation ETF up with it. Ark Invest founder Cathie Wood has been bullish about Tesla for many years, so it's no surprise to see the EV stock at the top of the ETF's list. This fund has been a roller coaster for long-term investors. An annualized 10-year return of 15.6%, an annualized five-year return of -7.8%, and a three-year annualized return of 31.6% show how quickly the fund can move in either direction. It's been on the upswing lately and is positioned to benefit from the AI rally. Can they double your money in five years? To double your return in five years, you need these ETFs to average annual compound returns of about 14.5%. Each of these funds easily exceeded that level of return in the past year (the lowest gain was 22%). While past performance is no guarantee of future returns, these funds all invest in ways that greatly improve their chances of outperformance. That should greatly improve the chance that an investor doubles their return.

Read Original

Source Information

Source: The Motley Fool