How to Pick the Best ETF to Invest in AI: A 2026 Playbook for Smart Money

Why Now Is The Time to Go All-In on AI?

The artificial intelligence revolution isn’t slowing down—it’s accelerating. If you’ve been sitting on the sidelines waiting for the perfect entry point, 2026 could be the year you finally make your move. But here’s the catch: picking individual AI stocks is risky and time-consuming. The smarter approach? Let a curated ETF do the heavy lifting while you diversify your exposure across the entire AI ecosystem.

Two standout options have emerged as the best etf to invest in right now, each catering to different investment philosophies. Whether you’re a data junkie who wants concentrated bets on the top AI players or someone seeking broader exposure, there’s a vehicle built for you.

The Aggressive Play: IVES (Dan Ives Wedbush AI Revolution ETF)

If you want your $1,000 to work harder, consider the IVES ETF—an actively managed fund hand-picked by tech analyst Dan Ives himself. With just 30 holdings, this isn’t your grandpa’s diversified index fund. It’s a laser-focused bet on the companies truly driving the AI transformation.

The IVES portfolio reads like a who’s who of tech dominance: Nvidia, Tesla, Microsoft, Amazon, and Meta Platforms occupy the top five slots, accounting for roughly 25% of the fund. The remaining “Magnificent Seven” members—Apple and Alphabet—round out the mega-cap exposure.

But Ives didn’t just stick with the obvious choices. The fund also includes serious AI plays like Palantir, Micron, and Oracle, plus smaller specialist names like Innodata, which powers AI through data labeling. Since its June launch, IVES has delivered a 27% return—a solid reminder that concentrated exposure to the right AI names pays off.

The trade-off? A 0.75% expense ratio, which is steep compared to passive index funds. But if active management and conviction-driven stock selection appeal to you, IVES delivers both.

The Balanced Bet: AIQ (Global X Artificial Intelligence & Technology ETF)

For investors who want the best etf to invest with less concentration risk, AIQ offers a different flavor. With 86 holdings versus IVES’ 30, this is your diversified AI play—still focused but with more breathing room.

The top holdings—Alphabet, Samsung, Tesla, Advanced Micro Devices, and Apple—show significant overlap with IVES, but the expanded roster gives you exposure to mid-sized AI enablers and supporting infrastructure companies. About 70% of AIQ’s holdings come from the information technology sector, keeping the AI focus razor-sharp while hedging against single-stock volatility.

The performance speaks for itself: AIQ is up 31% year-to-date and has crushed the S&P 500 consistently since launch in 2018. At a price-to-earnings ratio of 32, it’s only modestly more expensive than the broader market, suggesting the valuations are still reasonable even after the AI rally.

Like IVES, AIQ charges 0.68% annually—high by passive fund standards but justified by the active curation and ongoing stock selection. For most retail investors, AIQ represents the sweet spot between concentrated conviction and prudent diversification.

Which ETF Wins Your $1,000?

The real question isn’t which ETF is objectively “better”—it’s which matches your risk tolerance and market outlook.

Choose IVES if you believe the AI boom will be dominated by a small number of mega-cap winners and you’re comfortable with higher volatility. You’re essentially betting that the “Magnificent Seven” will continue their outperformance, with smaller holdings providing upside surprise potential.

Choose AIQ if you want AI exposure but prefer a broader net and steadier performance. You’ll sleep better at night, and you’ll still capture the lion’s share of AI-driven returns across multiple sub-sectors.

Looking Ahead to 2026

Yes, there’s chatter about AI bubbles and valuation concerns. Fair points. But the fundamentals are solid: enterprise adoption is accelerating, new AI tools are launching constantly across software companies, and industry leaders like Jensen Huang (Nvidia’s CEO) signal we’re just hitting an inflection point.

Both ETFs remain well-positioned to outperform the broader market in 2026, assuming the AI growth story continues. And given the technology’s expanding real-world applications, that seems like a reasonable bet.

The bottom line? If tapping into the AI boom is your goal, both IVES and AIQ make it simple. Stick $1,000 into either one, and you’re no longer picking individual stocks—you’re betting on the entire AI infrastructure and the companies building it. That’s the best etf to invest playbook for 2026.