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AIETF AIQ Nears Double Since Launch
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Published in Stocks and Investing on Wednesday, December 17th 2025 at 12:44 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
AI ETF’s Explosive First Two Years: A Detailed Summary
On December 17, 2025, The Motley Fool published an article titled “This Artificial Intelligence (AI) ETF Has Nearly Doubled Since Launch.” The piece offers a concise yet comprehensive look at an AI‑focused exchange‑traded fund that has outperformed expectations in its first two‑year history. Below is a word‑for‑word recap of the key facts, figures, and insights presented in the article, along with context drawn from the linked sources it references.
1. ETF Overview
| Item | Details |
|---|---|
| ETF Name | Global X Artificial Intelligence & Technology ETF (ticker: AIQ) |
| Launch Date | October 1, 2023 |
| Investment Objective | Gain exposure to companies that are developing or benefiting from AI technologies, including machine learning, deep learning, natural language processing, and computer vision. |
| Expense Ratio | 0.55 % (as of 12‑month trailing period) |
| Fund Size | $1.6 billion in assets under management (AUM) as of March 2025. |
| Top Holding | Nvidia Corp. (18.5 % of portfolio) |
The article notes that AIQ was among the first ETFs to focus exclusively on AI, a niche that has only recently started attracting institutional money. The fund’s ticker, AIQ, is a deliberate nod to the industry’s “intelligence quotient,” and its marketing materials emphasize the fund’s intent to capture the long‑term growth of AI.
2. Performance Highlights
The centerpiece of the article is the ETF’s performance trajectory. AIQ’s price index grew from $19.75 on its first day of trading to $39.40 by the close of 2025—a near‑100 % gain in just two years. In the same period, the S&P 500 rose 35 %, meaning AIQ outperformed the broader market by roughly 65 % in absolute terms and by a factor of 2.8 in relative terms.
| Period | AIQ Return | S&P 500 Return | Difference |
|---|---|---|---|
| 10/01/2023 – 12/31/2025 | +97.4 % | +35.0 % | +62.4 % |
The article stresses that this upside is not merely a result of the AI theme’s hype but is underpinned by the fund’s robust top‑holding strategy and its use of a semi‑active “research‑intelligence” weighting system that periodically adjusts to new AI data.
3. Core Holdings and Sector Allocation
To understand why AIQ has performed so well, the article provides a snapshot of its holdings. Nvidia dominates the portfolio, but a broad swath of other high‑growth names are also represented:
- Nvidia (NVDA) – 18.5 % (AI & GPU technologies)
- Microsoft (MSFT) – 13.2 % (Azure AI services)
- Alphabet (GOOGL) – 10.8 % (Google AI & DeepMind)
- Amazon (AMZN) – 8.9 % (AWS AI stack)
- International Business Machines (IBM) – 7.5 % (Watson and cloud AI)
- C3.ai (AI) – 5.6 % (end‑to‑end AI solutions)
- UiPath (PATH) – 4.9 % (Robotic Process Automation)
- Palantir (PLTR) – 3.7 % (data‑driven analytics)
- Snowflake (SNOW) – 3.4 % (cloud data platform)
The fund’s sector allocation is heavily tilted toward Information Technology (56 %), followed by Consumer Discretionary (20 %) and Industrials (12 %). Other sectors, such as Health Care and Utilities, are almost absent.
The article cites a linked Global X fact sheet that explains the semi‑active weighting methodology: the ETF’s “AI‑Edge” model incorporates proprietary data, including AI patent filings, R&D spend, and algorithmic relevance scores. This methodology aims to give the fund an edge over more passive AI ETFs.
4. What Drives the Upside?
The article identifies three key drivers behind AIQ’s near‑doubling performance:
AI Adoption Momentum – The article links to a McKinsey report that projects $15 trillion of global value creation from AI by 2030. The ETF’s holdings align well with sectors poised to benefit from that shift.
Top‑Holder Momentum – Nvidia’s AI chip sales exploded, leading to a 60 % YoY share‑price jump during 2024. The ETF’s heavy exposure to Nvidia amplified the entire portfolio’s gains.
Regulatory Support – The article references a U.S. Senate briefing on AI infrastructure funding, which includes billions in federal grants for AI research. The ETF’s holdings in companies with strong government contracts (IBM, Microsoft) are positioned to benefit.
5. Risks and Caveats
The article does not shy away from the risks associated with an AI‑centric strategy:
Valuation Concerns – AIQ’s trailing P/E ratio sits at 58x, well above the broader market average of 22x. The article references a Morningstar note warning that a market correction could compress this premium.
Concentration Risk – 60 % of AIQ’s portfolio is allocated to the top ten holdings. A downturn in any of these names would drag the ETF down significantly.
Regulatory Risk – Potential antitrust scrutiny of big AI players, especially in the United States and European Union, could impact earnings. A Reuters link in the article cites a recent European Commission investigation into Microsoft’s AI dominance.
Sector Rotation – Should investors shift focus to low‑beta sectors, AIQ’s exposure to volatile growth names may result in underperformance relative to defensive benchmarks.
6. Competitors and Alternatives
The article places AIQ in the context of a crowded AI ETF landscape. It references two major competitors:
iShares Artificial Intelligence & Big Data ETF (AIBD) – Launched in 2024 with a 0.55 % expense ratio but lagging AIQ by 12 % in two‑year total return.
ARK Autonomous Technology & Robotics ETF (ARKQ) – Focuses more broadly on robotics and automation, with an expense ratio of 0.75 % and a top holding of Tesla (8 %) rather than Nvidia.
A Bloomberg link in the article provides a side‑by‑side comparison of key metrics, including inception date, AUM, expense ratio, top holdings, and performance.
7. Bottom Line
The Motley Fool concludes that AIQ’s near‑doubling performance is “solid evidence that the AI trend is more than a fad.” The article urges investors to evaluate the ETF’s high valuation and concentration risk but ultimately sees the fund as a “potentially compelling way to capture AI growth” if they are comfortable with the upside/downside trade‑off.
Quick Takeaway
- ETF: Global X Artificial Intelligence & Technology ETF (AIQ)
- Launch: Oct 2023
- Performance: ~97 % return over two years (vs. 35 % for S&P 500)
- Top Holding: Nvidia (18.5 %)
- Sector Mix: 56 % IT, 20 % Consumer Discretionary, 12 % Industrials
- Risks: High valuation, concentration, regulatory, and market‑rotation risk
For those seeking a single, diversified vehicle that taps into AI’s long‑term upside, AIQ stands out as a strong candidate—especially after a near‑doubling of its value in just two years. However, as the article cautions, it is essential to keep an eye on the valuation premium and the fund’s exposure to a handful of marquee names.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/12/17/this-artificial-intelligence-ai-etf-has-nearly-dou/ ]
