Financial media has coined yet another term, and this time it is the “SaaS-pocalypse,” referring to the potentially negative impact of artificial intelligence on software-as-a-service companies. Seemingly each time a new agentic model is released by Anthropic, shares of software companies sell off.
The concern is that AI-native applications could replace traditional SaaS tools that businesses rely on for functions like enterprise resource planning, customer relationship management, legal research and business analytics. Instead of paying recurring subscription fees, companies may increasingly adopt AI-driven tools that can perform similar tasks at lower cost.
This dynamic is already showing up in market performance. The iShares Expanded Tech-Software Sector ETF (ticker: IGV), which tracks many SaaS-focused companies, is down about 17% year to date on a price return basis. In contrast, the State Street Technology Select Sector SPDR Fund (XLK) is up 9% over the same period.
While parts of the software industry may face disruption, AI as a whole remains a powerful growth driver. Investors looking to participate may find it useful to focus on bottlenecks in the AI value chain, areas where supply is constrained for critical inputs.
That can include looking beyond firms developing AI models to the broader ecosystem that supports them, such as physical infrastructure like data centers, the compute layer where cloud providers and specialized firms supply processing power, and even upstream inputs like electric utilities and critical minerals needed to run these systems.
Some AI-focused exchange-traded funds target a specific segment of this value chain, while others take a broader approach across multiple themes. Either way, they offer a more diversified way to gain exposure to a fast-moving and uneven competitive landscape.
“We believe it is critical to approach investing in generative AI companies with an actively managed approach,” says Thomas DiFazio, ETF strategist at Roundhill Investments. “The AI landscape is rapidly evolving, and it is crucial to be nimble.”
Here are six of the best AI ETFs to buy today:
| ETF | Expense Ratio |
| Global X Artificial Intelligence & Technology ETF (AIQ) | 0.68% |
| Global X Robotics & Artificial Intelligence ETF (BOTZ) | 0.68% |
| Pacer Data & Infrastructure Real Estate ETF (SRVR) | 0.49% |
| Roundhill Generative AI & Technology ETF (CHAT) | 0.75% |
| iShares A.I. Innovation and Tech Active ETF (BAI) | 0.55% |
| KraneShares Artificial Intelligence & Technology ETF (AGIX) | 0.99% |
Global X Artificial Intelligence & Technology ETF (AIQ)
“We’re still in the early stages of the AI cycle, and proper diversification is extremely important – be it across company stages or geographies – because it’s difficult to pick a winner or two this early,” says Tejas Dessai, director of thematic research at Global X ETFs. “With a thematic ETF, you’re following an idea as opposed to a complex strategy.” Global X’s flagship ETF is AIQ, which holds $8.3 billion in assets.
AIQ tracks 84 companies represented by the Indxx Artificial Intelligence and Big Data Index. The ETF’s portfolio is tilted toward the technology sector, at 74%, followed by communication services and consumer discretionary. While U.S. firms make up a large share, AIQ is globally diversified with exposure to Asian markets such as South Korea, China and Taiwan. The ETF charges a 0.68% expense ratio.
Global X Robotics & Artificial Intelligence ETF (BOTZ)
“When you think about smartphones, laptops or even mobile applications, lower prices and cheaper development costs didn’t shrink the market but expanded it as innovation accelerated,” Dessai says. “AI could follow the same trajectory, embedding itself into the physical world, from factories and drones to delivery vans and buildings.” BOTZ’s applied automation focus helps express this thesis better than AIQ.
BOTZ takes a more focused approach than AIQ. Industrials dominate the portfolio, at 44%, reflecting its emphasis on factory robotics and logistics automation. Geographically, BOTZ also has less U.S. exposure than AIQ, with Japanese and Chinese equities making up roughly 26% and 22% of the portfolio, respectively, highlighting their leadership in applied AI. The ETF also charges a 0.68% expense ratio.
Pacer Data & Infrastructure Real Estate ETF (SRVR)
Investors who prefer a more “toll booth” approach to AI, getting paid regardless of which companies ultimately win, may be interested in SRVR. This ETF tracks an index of real estate investment trusts, or REITs, that generate at least 85% of earnings from data and technology infrastructure and derive at least 50% of revenue from power or connectivity services. SRVR charges a 0.49% expense ratio.
SRVR’s portfolio consists of 72 companies, weighted by market capitalization and rebalanced quarterly, all tied to the physical backbone of the digital economy. The top holdings read like a who’s who of digital infrastructure, including Digital Realty Trust Inc. (DLR), Equinix Inc. (EQIX) and Crown Castle Inc. (CCI). Because the ETF is composed of REITs, it also offers income potential with a 1.9% 30-day SEC yield.
Roundhill Generative AI & Technology ETF (CHAT)
Unlike the previous AI ETFs, CHAT does not passively track an index. For a 0.75% expense ratio, investors get a concentrated portfolio of 43 companies. Despite the higher fees, CHAT has historically delivered strong outperformance. Over the trailing one-year period as of March 31, CHAT returned 82.5% annualized, versus 27.5% for AIQ. The ETF currently manages $1.3 billion in assets.
“CHAT actively selects stocks using a proprietary methodology that combines a transcript score and sector score to evaluate companies’ relevance to generative AI, factoring in their revenue, profit and R&D investment in AI technologies,” explains Dave Mazza, CEO at Roundhill Investments. “Companies are then scored and selected based on their exposure to AI, market capitalization and liquidity.”
iShares A.I. Innovation and Tech Active ETF (BAI)
In actively managed ETFs, the risk of style drift occurs when a portfolio gradually shifts away from its original mandate, usually due to changes in internal models or the departure of key personnel. That can lead to exposures that no longer align with investor expectations. As a result, investors who prefer an active approach to AI may want to consider having more than one option on their roster, such as BAI.
This active AI ETF manages about $12 billion in assets and has a concentrated portfolio of 46 holdings. It is run by Tony Kim, head of BlackRock’s Fundamental Equities Global Technology team, alongside Reid Menge, a managing director on the same team. Over the past year, BAI has delivered a 52.7% return, trailing CHAT but still outperforming AIQ. The ETF charges a 0.55% expense ratio.
KraneShares Artificial Intelligence & Technology ETF (AGIX)
Some of the most impactful AI companies today are still privately held. That includes names like OpenAI, Anthropic and xAI, which is now part of SpaceX. Access to these firms is typically limited to accredited investors. However, under SEC Rule 22e-4, ETFs are allowed to hold up to 15% of their assets in illiquid securities. AGIX uses this structure to blend public and private AI investments.
While the bulk of AGIX’s portfolio tracks publicly listed companies via the Solactive Etna Artificial General Intelligence Index, what sets it apart is its direct private exposure. The ETF currently allocates 2.9% to Anthropic and 2.1% to SpaceX (for exposure to xAI), and does so through direct equity ownership rather than proxy vehicles like special-purpose vehicles. AGIX charges a 0.99% expense ratio.