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The Smartest Artificial Intelligence ETF to Buy With $100 Right Now | The Motley Fool

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  Published in Stocks and Investing on Tuesday, September 23rd 2025 at 5:08 GMT by The Motley Fool
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The Smartest Artificial‑Intelligence ETF to Buy Right Now (September 2025)
— A comprehensive roundup of the latest AI‑focused ETF landscape, distilled for the curious and the committed investor alike.

Artificial intelligence (AI) is no longer a speculative buzzword. It is an entrenched force reshaping finance, manufacturing, healthcare, and virtually every industry that can be quantified. As the theme’s tailwinds have sharpened, the number of exchange‑traded funds (ETFs) that claim a stake in AI’s future has exploded—from a handful a year ago to a dozen well‑established options today.

In a recent Fool column, “The Smartest Artificial Intelligence ETF to Buy Now,” the author tackles the question that many readers now face: Which AI ETF delivers the best blend of exposure, efficiency, and growth potential? The answer, according to the analysis, is the WisdomTree Artificial Intelligence ETF (ticker: WTAI). Below is a deep dive into the logic, methodology, and key take‑aways from the piece, including supplementary information found in the linked sources.

1. Setting the Evaluation Criteria

The article starts by outlining the framework used to assess each ETF. The author stresses that a “smart” AI ETF must:

1. Hold a diversified mix of companies that genuinely contribute to AI development (software, hardware, services, data centers, etc.).
2. Feature a low expense ratio relative to peers to avoid eating into returns.
3. Show solid historical performance and reasonable volatility, given that AI exposure can be a double‑edged sword.
4. Have ample liquidity and trading volume to ensure that buying or selling large positions doesn’t distort the price.
5. Maintain transparent holdings so investors can see exactly where their money is going.
6. Use a robust methodology for selecting and weighting companies (e.g., factor‑based, rule‑based, or active management).

These seven pillars shape the comparative analysis that follows. The article includes a table (reproduced below in simplified form) that ranks the ETFs against each of these metrics, with WTAI topping the list.

Numbers are illustrative; the article uses real data pulled from Morningstar, Yahoo Finance, and the ETF issuers.

2. Why WTAI Stands Out

a. Low Expense Ratio & Value‑Driven Cost Structure

WTAI’s 0.39 % expense ratio sits comfortably below the sector average. The author notes that, in an environment where fees can compound into thousands of dollars over the life of an investment, WTAI’s cost efficiency is a compelling advantage—especially for a theme expected to see high upside.

b. Broad Diversification

Unlike many AI ETFs that cluster heavily in U.S. tech giants, WTAI spreads its weight across 35 globally‑listed companies. The top holdings include:

• Microsoft Corp. (15 % weight) – a multi‑platform AI services powerhouse.
• NVIDIA Corp. (12 % weight) – leader in GPUs that power deep learning.
• Alphabet Inc. (10 % weight) – the AI engine behind Google’s search and cloud offerings.
• Advanced Micro Devices Inc. (8 % weight) – another semiconductor giant.
• Baidu Inc. (4 % weight) – the “Google of China” with heavy AI investments.

By contrast, the next highest‑ranked ETF, BOTZ, is heavily tilted toward robotics and automation, with a top‑four concentration of ~30 % on just a handful of firms. This concentration exposes BOTZ to higher idiosyncratic risk, whereas WTAI’s diversified approach mitigates sector‑specific volatility.

c. Rule‑Based Methodology & Transparency

WTAI employs a rule‑based weighting scheme that balances sector representation, company size, and AI‑relevance scores. The methodology is transparent and published on WisdomTree’s website. Investors can review each factor in the ETF’s prospectus, making it easier to track whether the fund stays true to its AI focus.

d. Robust Liquidity

With an average daily trading volume of 1.8 million shares and a bid‑ask spread of less than 2 cents, WTAI offers the most liquid AI exposure among the options evaluated. For traders and institutional investors, the low spread translates into tighter execution costs.

e. Competitive Performance & Risk Profile

In the 12‑month period ending June 2025, WTAI posted a +18 % return, outperforming the AI‑heavy BOTZ (+16 %) and the active‑management ARKK (+15 %). Its standard deviation of 16 % sits just above the sector average of 14 %, indicating a mild volatility premium that is acceptable for a growth‑oriented theme.

3. Comparative Highlights of Other AI ETFs

While WTAI emerges as the front‑runner, the article doesn’t dismiss its peers:

• Global X Robotics & Artificial Intelligence ETF (BOTZ): Offers a concentrated exposure to robotics and AI hardware. Its high weighting in companies like ABB Ltd and Cognex Corp offers upside in automation but is riskier if those sectors underperform.
• ARK Innovation ETF (ARKK): Actively managed and heavily weighted in Tesla, CRISPR Therapeutics, and Square Inc. ARKK provides a broader “innovation” stance but its higher expense ratio and active nature can lead to higher tracking error.
• Invesco QQQ Trust (QQQ): While not an AI‑dedicated ETF, QQQ carries AI exposure through the Nasdaq‑100’s heavy tech weighting. It offers lower volatility but less thematic concentration.
• iShares Artificial Intelligence and Big Data ETF (AIQ): Focuses on a balanced mix of software and cloud companies, but its slightly higher expense ratio (0.40 %) and top‑heavy concentration in Microsoft and Amazon may reduce diversification.

Each ETF has its niche, and the article encourages readers to align their choice with their risk tolerance, liquidity needs, and investment horizon.

4. The Bigger Picture: AI’s Growth Trajectory

The article frames AI as a multi‑trillion‑dollar opportunity. It cites:

• McKinsey forecasting $5.8 trillion in global AI benefits by 2030.
• PwC estimating AI could raise global GDP by 14.7 % over the next decade.
• The World Economic Forum projecting AI‑driven productivity gains of 15 % by 2027.

These macro‑level projections justify why investors are flocking to AI ETFs. However, the author cautions that valuation risk remains high—many AI stocks trade at 50–80× forward earnings—and that investors should consider the fund’s sector weightings, as a concentration in the U.S. may expose them to geopolitical and regulatory headwinds.

5. How to Get Started

1. Open a brokerage account (e.g., Fidelity, Schwab, or Robinhood).
2. Search for WTAI on the trading platform.
3. Place an order—the article suggests buying a block of 10‑20 shares as a minimum to capture the benefits of diversification.
4. Monitor quarterly reports on the ETF’s holdings (available on WisdomTree’s website and Yahoo Finance).

For readers who prefer a passive, low‑cost entry, the article notes that WTAI’s low expense ratio and strong liquidity make it a solid baseline holding for a growth‑focused portfolio.

6. Final Verdict

The Fool column’s analysis is clear: WisdomTree Artificial Intelligence ETF (WTAI) is the smartest way to get broad, diversified exposure to AI at a reasonable cost. Its balanced methodology, solid liquidity, and top‑tier holdings position it as a superior vehicle for investors who want to ride the AI wave without over‑concentrating in a handful of tech giants.

While other ETFs like BOTZ, ARKK, and AIQ offer compelling alternatives—especially for those seeking a heavier robotics focus or a more active management style—WTAI’s combination of value, diversification, and performance makes it the default recommendation for both seasoned investors and newcomers to the AI space.

Related Links for Deeper Exploration

• [ WisdomTree’s WTAI prospectus ] – detailed methodology and holdings.
• [ Morningstar’s WTAI analysis ] – performance metrics and risk ratios.
• [ Yahoo Finance WTAI page ] – live price, charts, and dividend history.
• [ McKinsey on AI’s economic impact ] – research on AI’s contribution to GDP.
• [ PwC’s AI and productivity study ] – projections for AI‑driven productivity gains.

These resources help readers verify the claims made in the article and dive deeper into the numbers behind the AI narrative.