AIQ's 32% Rally in 2025: The International Tech Play That Beat the Nasdaq

2026-01-20 23:04:17

Abstract generation in progress

The Global X Artificial Intelligence and Technology ETF (NASDAQ: AIQ) delivered impressive gains last year, climbing 32% according to S&P Global Market Intelligence data. While AI momentum clearly drove broad market gains, this particular fund’s outperformance reveals something more interesting: the power of international tech diversification.

Why AIQ Pulled Ahead Without Extra Risk

Most AI-focused funds concentrate heavily on U.S. tech giants, making them move almost in lockstep with the Nasdaq Composite. Yet AIQ managed to outpace the Nasdaq throughout 2025 without taking on proportional volatility—even staying resilient during market corrections before the Liberation Day tariff announcements.

The secret lies in its 86-holding composition. With Samsung commanding just 5.25% of assets as the largest position, no single stock dominates performance. The fund maintains a tech-heavy allocation at 72%, but balances this with strategic exposure beyond U.S. borders.

The International Fixed Calendar Advantage

Here’s where AIQ’s structure becomes compelling: three of its top five holdings—Samsung (OTC: SSNL.F), Taiwan Semiconductor (NYSE: TSM), and Alibaba—operate outside the United States. When U.S. tech faces headwinds, these companies often benefit from regional cycles and different market dynamics. SK Hynix, the South Korean memory chipmaker, rounds out the international presence at #7.

This geographic diversification isn’t accidental. The fund allocates substantially to the top three memory chip manufacturers—Samsung, Micron, and SK Hynix—a trio that posted strong 2025 results and appears positioned for continued momentum.

The Nasdaq and S&P 500 tracking funds rarely achieve this level of international tech exposure, making AIQ structurally different from mainstream index plays.

What 2026 Looks Like

Momentum has already carried into the new year. Through January 16, AIQ was up 3%, suggesting investor confidence in AI’s continued growth story. Most top holdings still maintain reasonable valuations despite 2025’s rally, creating a favorable risk-reward setup if the AI thesis holds.

Alphabet (NASDAQ: GOOG, GOOGL), Advanced Micro Devices (NASDAQ: AMD), and other chipmakers continue driving the narrative, but it’s the international exposure that may prove decisive in coming quarters.

The fund tracks the Indxx Artificial Intelligence & Big Data Index, designed to capture firms benefiting from AI advancement and data trends—a thesis that shows no signs of fading.

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