For many investors, AI ETFs now offer a practical way to gain diversified exposure to one of the fastest-growing areas of technology. Artificial Intelligence is already reshaping industries and is expected to remain a key driver of global innovation for years to come.
In this Moneyfarm guide, we will see the best AI ETFs in terms of performance and we will explain how AI investing works, what makes AI-focused ETFs an accessible way to participate in this trend, and what to consider before adding them to your portfolio.
| What are AI ETFs? | Funds investing in AI-related companies |
| How do ETFs work? | Track a group of assets, traded like stocks |
| What are the advantages of AI ETFs? | Diversified, accessible, low-cost exposure to AI |
| Are AI ETFs risky? | Yes, subject to market and sector volatility |
At a Glance
- AI investing offers long-term growth potential
- AI ETFs make investing accessible and diversified by allowing investors to hold a basket of companies driving or benefiting from AI innovation
- UK innovation and government support the UK has committed over £1 billion to AI research and development, reinforcing the sector’s strategic importance.
- AI investments can be held within tax-efficient wrappers
- Thematic investing through Moneyfarm, which allows investors to allocate a portion of their portfolio to growth themes such as AI.
Understanding AI in 2026
Artificial Intelligence (AI) refers to a broad set of technologies that enable machines to perform tasks that typically require human intelligence, such as understanding language, recognizing patterns, generating content and making decisions. Modern AI systems, especially those based on machine learning, learn from vast amounts of data to improve their performance over time.
In 2026, AI is embedded in many aspects of daily life, from virtual assistants and recommendation systems to healthcare, finance, and creative tools. As the technology continues to evolve, advances in areas like generative AI and deep learning are making systems more capable, adaptive, and accessible, changing how we work, communicate, and innovate.
Generative AI
Generative AI can, in addition to text, generate things like code, images, music, speech, and video. One such company operating in this particular sector is OpenAI. It was founded as a non-profit organisation in 2015 by Elon Musk, Sam Altman and others.
OpenAI is an AGI research and deployment company, probably best known for its AI text generator, ChatGPT. OpenAI has closed a $122 billion funding round in 2026.
Wannabee OpenAI investors will just have to kick their heels until OpenAI decides to raise capital via an IPO, if that time ever arises. The only other way to invest in OpenAI, in a roundabout way, would be through association, by perhaps buying some Microsoft stock.
Why artificial intelligence is important to investors
The AI industry will reform all aspects of our lives. It will impact what we eat, how we work, the way in which industrial machines are monitored and managed, how healthcare gets delivered, and how we meet the climate change challenge. For investors, this represents a powerful long-term growth opportunity across multiple sectors.
In the UK, the government has made AI development a national priority. Prime Minister Rishi Sunak, and Michelle Donelan, former Technology Secretary, pledged £100 million to help to establish the Foundation Model Taskforce, whose task will be to help the UK develop its own “sovereign” AI to ensure that as a nation we are competitive in the global AI world.
Microsoft and OpenAI have updated their strategic partnership this year Microsoft remains the primary cloud partner and retains licensing rights to OpenAI’s technology until 2032, but no longer on an exclusive basis. OpenAI gains greater freedom to collaborate with other cloud providers.
Here are some of the leading AI platforms developed by companies around the world.
| AI | Company |
| ChatGPT | OpenAI |
| Claude | Anthropic |
| Gemini | |
| DeepMind | Google DeepMind |
| Copilot | Microsoft |
| Grok | xAI |
| Perplexity AI | Perplexity AI |
| Mistral | Mistral AI |
| Midjourney | Midjourney Inc. |
| Palantir AIP | Palantir |
Why artificial intelligence is important to investors
UK government aims to support AI the UK National AI Strategy sets out a 10-year plan to make the country a global leader in artificial intelligence. It focuses on three main goals boosting long-term investment in the AI ecosystem, ensuring AI benefits all sectors of society and the economy and building a strong governance framework to manage risks and support innovation.
The strategy highlights the importance of strengthening research and development, improving access to data, computing power, funding and AI talent. It also aims to support the adoption of AI across industries and public services, helping drive productivity and economic growth.
The UK positions itself as a pro-innovation leader in AI regulation, aiming to balance rapid technological development with safety, trust, and ethical use, while maintaining global competitiveness in the AI sector.
Today, investing in artificial intelligence is an important strategic choice for several reasons
- Structural growth AI is transforming key sectors, creating new market opportunities.
- Higher productivity companies that adopt AI can automate processes, reduce costs, and improve efficiency.
- Large ecosystem of beneficiaries not only AI big tech companies, but also related sectors are attractive, such as cloud computing, software, and cybersecurity.
- Continuous innovation the development of generative models and advanced systems keeps the sector evolving very quickly.
- Growing global demand governments and businesses are increasingly investing in AI to stay competitive.
In fact, strong market growth is expected, and investing in this area could generate attractive long-term returns.
AI as a thematic investment
There are many AI companies to invest in, but you would be wise to consider which AI investment vehicle you should choose. A relatively new approach is something called thematic investing, a new investing initiative which Moneyfarm has recently added to its offerings.
While trading AI stocks is one approach, picking individual stocks in any industry can be risky. The stock market can be a pretty volatile place, and holding individual shares might make you vulnerable to sudden price drops. With our thematic approach to investment, that risk could be lowered because of the core-satellite stance we use.
You can invest in many growth industries thematically, not just an AI investment. Our investment themes 2026 also include things like the blue water and clean water sectors. Other sectors include EV cars, clean, renewable energy, infrastructure, and the healthcare market.
With our core-satellite approach, only a relatively small percentage (between 5% and 20% of your core portfolio) can be allocated to growth theme satellites. It’s medium to high risk, but as a long-term investment, the cap we impose is a way of helping to limit your exposure.
The best AI stocks to look out for
If you are a savvy investor, you know how to invest money, you know how to do market research, and you are familiar with how share trading works, and you have a good investment plan, stock picking is an option. Here are the best AI Stocks to buy in 2026 according to Forbes.
| Company | Market Cap | 1 year return |
| Advanced Micro Devices, Inc. (AMD) | $567.07B | 268.2% |
| AppLovin Corp. (APP) | $151.20B | 67.4% |
| Broadcom Inc. (AVGO) | $2.00T | 124.7% |
| Micron Technologies (MU) | $560.17B | 541.6% |
| Nvidia Corp. (NVDA) | $5.06T | 95.7% |
| Qualcomm (QCOM) | $158.98B | 1.1% |
Why You Should Invest in AI ETFs
Artificial Intelligence is one of the most transformative forces in the global economy, and AI ETFs offer a practical way to invest in this long-term trend. Its impact is already visible across a broad range of industries healthcare, finance, manufacturing, logistics, retail, and digital services. As adoption continues to accelerate, AI is expected to play a central role in driving productivity, innovation, and long-term economic growth.
But investing directly in individual AI companies can be challenging due to high volatility, rapid technological change, and uncertainty around which businesses will emerge as long-term winners. Rather than choosing individual stocks, ETFs give you diversified exposure to a range of companies developing or benefiting from AI technologies.
By spreading investments across multiple companies and sectors, AI ETFs help reduce company-specific risk while still capturing the growth potential of the broader AI theme. They also offer liquidity, transparency, and relatively low costs compared to actively managed funds, making them accessible to a wide range of investors. Here are some of the reasons why AI ETFs could be interesting.
| Advantage | How it works |
| Diversification Across Industries | ETFs hold a group of assets rather than a single company’s shares they help spread risk and reduce volatility. AI ETFs often include firms across sectors such as technology, manufacturing, and healthcare, all contributing to AI innovation |
| Lower Risk Than Individual Stocks | Picking individual AI stocks can expose investors to sharp price swings. By contrast, ETFs track entire market themes or indices, smoothing out fluctuations |
| Access to Thematic Growth | Thematic investing targets structural trends shaping the global economy. Choosing AI ETFs gives exposure not only to artificial intelligence, but also to linked technologies such as semiconductors, clean energy, e-commerce, and electric vehicles. This approach captures innovation across multiple industries without needing to manage separate holdings |
| Suitable for Long-Term Investors | AI adoption is expected to accelerate over the next decade. Holding AI ETFs within a diversified portfolio can help investors benefit from this growth potential while managing short-term volatility. The ETF structure supports consistent, long-term investing rather than short-term speculation |
Consider that core-satellite approach further limits exposure by capping high-growth themes like AI to 5–20% of your total portfolio.
Example of AI ETFs
A thematic portfolio should include some AI ETFs, for example
- WisdomTree Artificial Intelligence USD ACC
- Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C
- Amundi MSCI Robotics & AI UCITS ETF Acc
- L&G Artificial Intelligence UCITS ETF
- iShares AI Adopters & Application UCITS ETF USD Acc
Investing in artificial intelligence (AI) ETFs in 2026 is relatively simple and follows the same principles as traditional ETFs, but with a focus on the growth of AI.
First, you need to choose a bank or broker to invest with. Then, you select the most suitable ETFs based on your strategy and investment goals. It is important to keep in mind that, in this case, long-term investment strategies are usually recommended.
How to invest in AI ETFs with Moneyfarm
If you want to invest in AI stocks, you can invest in ETF AI focussed portfolios by simply clicking “Get Started”. Want to trade AI ETFs or AI stocks, look no further. Moneyfarm unveils its Share Investing platform, a direct and user-friendly method for stock market engagement. Available through both a web interface and a mobile app, it facilitates the immediate purchase and sale of shares. The platform provides a vast selection of individual UK stocks, ETFs, and UK mutual funds, allowing for involvement in diverse market sectors and investment styles.
It also offers the opportunity to invest in a globally diversified, professionally managed portfolio, ensuring a range of options that align with your investment strategy and financial objectives. Our service is designed with a long-term investment perspective, ensuring you benefit from our advanced technology and the expert guidance of our investment consultants. This approach helps you tailor your portfolio to your values and financial goals, offering a comprehensive view of your investments for effective decision-making.
Share Investing platform supports your investment journey, whether you’re investing in familiar companies, exploring various sectors, engaging with ETFs, or expanding your scope with our UK Mutual Funds, providing a personalized and insightful investment experience.
FAQ
AI ETF is a good option. AI is one of the strongest megatrends today, which is the main reason why you should invest now but only in the long term, and the sooner you start, the better.
However, there is always a risk associated with investing, and past performance does not guarantee future results. So it’s critical to conduct your own research and make an educated choice based on your individual financial situation, level of risk tolerance, and investment objectives.
Thematic investment might not be appropriate for short-term investing. Thematic investing is often a longer-term investment strategy that calls for patience and a long-term perspective.
While growth themes can offer medium to high returns in the long term, in the short term, they can be subject to market volatility. The risks and possible rewards of a thematic investment should therefore be thoroughly considered before making any investment decisions.
PWC estimates indicate that the UK AI market might develop significantly and increase the UK’s GDP by 10.3% by 20230, reaching a potential value of £232 billion.
No, you can invest in all four of our thematic growth themes. Once you apply, our team of experts at Moneyfarm can help you to maximise your thematic investing to help minimise risk and ensure you aren’t overexposed.
AI ETFs can be recommended for beginners because they provide diversified exposure to a fast-growing sector without requiring investors to pick individual stocks. However, as they are thematic investments, they can be more volatile than broad market ETFs. Beginners should consider their risk tolerance and ensure AI ETFs are part of a well-diversified portfolio.
AI ETFs generate returns through the performance of the companies they hold. This includes capital appreciation (when share prices increase) and, in some cases, dividends. The return depends on how well the AI sector and related industries perform over time.
Yes, many AI ETFs available to UK investors can be held within tax-efficient wrappers such as ISAs or SIPPs, depending on the provider. This can help investors reduce or eliminate taxes on capital gains and income, improving overall investment efficiency.
There is no single best AI ETF. The right choice depends on your investment goals, risk tolerance, and time horizon. But some of the most used AI ETFs available to UK and European investors include WisdomTree Artificial Intelligence USD ACC, Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C and Amundi MSCI Robotics & AI UCITS ETF Acc.
*As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. Past performance is no guarantee of future results. It is important to consider your risk tolerance and investment objectives before proceeding.
