Back to News
quantum-computing

The Best Artificial Intelligence ETF to Invest $1,000 in Right Now

The Motley Fool
Loading...
4 min read
0 likes
⚡ Quantum Brief
AI stocks dipped 10% in late 2025 but remain near highs, signaling early-stage growth potential despite valuation concerns. The sector is expected to expand significantly over the next few years. The Global X Artificial Intelligence & Technology ETF (AIQ) stands out for its diversified approach, investing in AI hardware, software, and big data companies across sectors and regions. AIQ allocates 28% to non-tech firms and 33% to foreign companies, reducing reliance on U.S. megacap stocks while maintaining exposure to global AI leaders. Potential 2026 interest rate cuts could boost growth stocks, benefiting AIQ’s holdings, as lower rates improve financials and support expansion in the sector. AI capital spending is broadening beyond megacaps, with companies like Meta increasing investments, positioning AIQ’s balanced portfolio for broader market gains.
The Best Artificial Intelligence ETF to Invest $1,000 in Right Now

Summarize this article with:

The AI revolution is just getting started.Artificial intelligence (AI) stocks have spent the early part of 2026 watching their momentum cool off a bit. They collectively lost about 10% in a brief November sell-off, and they've been hovering back near recent highs ever since. While worries about valuations will probably dog this sector for a while, there's little question about the potential for AI. We're still in the very early innings of the AI boom, and we're likely to see this sector grow many times over within the next several years. Over a dozen different exchange-traded funds (ETFs) have emerged to target artificial intelligence stocks and/or quantum computing themes. While many of them seem similar on the surface, you always need to dig into the details to really determine which ones are the best. In my opinion, the Global X Artificial Intelligence & Technology ETF (AIQ +3.32%) does one of the better jobs of portfolio construction and is able to benefit from current macro tailwinds. Image source: Getty Images. What is the Global X Artificial Intelligence & Technology ETF? This fund invests in companies throughout the AI ecosystem. It "seeks to invest in companies that potentially stand to benefit from the further development and utilization of artificial intelligence (AI) technology in their products and services, as well as in companies that provide hardware facilitating the use of AI for the analysis of big data." ExpandNASDAQ: AIQGlobal X Funds - Global X Artificial Intelligence & Technology ETFToday's Change(3.32%) $1.61Current Price$50.08Key Data PointsDay's Range$49.01 - $50.1852wk Range$30.60 - $53.94Volume534 While the final portfolio tilts heavily toward the U.S. tech sector, I appreciate that it has meaningful allocations outside of this core segment. About 28% of the fund is in nontech companies, and a full third is invested in foreign companies. That means that if there's a rotation away from the megacap names, this ETF still has the ability to generate outperformance from other areas of the portfolio. Why the time is right for this ETF There are a couple of reasons I think the stocks in this fund are set to rise. 1. Lower interest rates are possible While lower interest rates are not guaranteed in 2026, the market is pricing in two cuts. If inflation remains stable and the economy can maintain a slow growth trajectory, these cuts can still happen. Lower rates would help this growth sector continue to expand and improve financials in the process. 2. AI capital expenditure is broadening The initial wave of AI spending was done by the megacaps. For most of them, that spend translated into positive revenue and earnings growth, fueling stock price outperformance. Now, AI capital expenditure (capex) is increasing (Meta Platforms' recent capex guidance is a good example), and it's happening in different parts of the ecosystem. If we see benefits begin spreading out beyond just the biggest names, this fund's portfolio, which is more evenly balanced and broadly diversified, should do well. Overall, I like that the Global X ETF doesn't overweight the "Magnificent Seven" stocks. Its willingness to invest a good chunk of its assets internationally yet maintain its large-cap tilt suggests that it's focusing on a broad range of global leaders, not just a narrow set of giant U.S. companies. As the AI boom continues to grow, this section of the industry should be positioned to do well.Read NextJan 18, 2026 •By Chris NeigerThe Smartest Artificial Intelligence ETF to Buy With $1,000 Right NowJan 18, 2026 •By Jeremy BowmanWhy Global X Artificial Intelligence and Technology ETF (AIQ) Jumped 31% in 2025Jan 14, 2026 •By James HiresWhy This AI ETF's Top Holdings Could Deliver a 300% return by 2030Dec 24, 2025 •By Jeremy BowmanThe 2 Best AI ETFs To Invest $1,000 in Right NowOct 10, 2025 •By Keith Speights3 AI ETFs to Buy Now for the Coming Tech RevolutionSep 26, 2025 •By Adria CiminoDon't Overthink AI -- ETFs Could Be the Safest Long-Term PlayStocks MentionedGlobal X Funds - Global X Artificial Intelligence & Technology ETFNASDAQ: AIQ$50.08 (+3.32%) $+1.61*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Read Original

Tags

government-funding
quantum-computing

Source Information

Source: The Motley Fool