This Quiet AI ETF Has Outperformed QQQ—and Hardly Anyone Talks About It

The stock market-driven volatility has led investors towards exchange-traded funds. Long-term investors are looking for low-risk options that can generate impressive returns and ETFs are a valuable tool. They allow you to own stocks across multiple industries at little cost. A single purchase can provide diversified holdings. When choosing ETFs, consider the portfolio, returns, and costs. 

The technology sector is hot today and several ETFs have become tech-heavy. While Invesco QQQ Trust (NASDAQ:QQQ) is one of the most popular ETFs with a return of 12.9% in 12 months, there’s one ETF that has outperformed it and could continue doing so. Not many talk about the Global X Artificial Intelligence & Technology ETF (AIQ).

It is an AI-focused ETF that has seen impressive growth over the past few years. All of us interact with artificial intelligence more than we imagine. It has become an integral part of our lives and will continue to dominate several industries. This makes AIQ worth an addition to your portfolio. 

Tech-heavy portfolio

The Global X Artificial Intelligence and Technology ETF is an AI ETF that gives investors an opportunity to invest in AI at little risk. AIQ allows you to own the best tech and software stocks without researching each one or worrying about the market volatility. 

It was launched in 2018 and invests in companies that benefit from the development of AI technology and the companies that enable the use of AI. As the AI industry continues to expand, this ETF will continue to generate strong returns.

AIQ holds 86 stocks and its biggest holdings are familiar industry names. Since it is an AI fund, it invests 72% of the portfolio in the technology sector followed by 10% in communication services and 9% in consumer discretionary. Its industry holdings are as follows:

• Software and services: 39.2%
• Semiconductors and semiconductor equipment: 20.5%
• Technology hardware and equipment: 12.6%
• Media and entertainment: 10%

Own elite names

AIQ is a global fund which means you get to own some of the best stocks across the world. The fund is highly diversified and invests 67.6% in the United States, followed by 8.2% in China and 5.1% in South Korea. It also invests in stocks across Germany, Canada, Japan, and Brazil. Its top 10 holdings constitute 33.46% of the portfolio. 

These stocks are popular names including Nvidia (NASDAQ:NVDA), Palantir Technologies (NASDAQ:PLTR), Microsoft (NASDAQ:MSFT), Netflix (NASDAQ:NFLX), Oracle (NYSE:ORCL), Cisco Systems, Inc. (NASDAQ: CSCO), and Broadcom (NASDAQ:AVGO). With stocks like Palantir, Nvidia, and Netflix, this ETF has outperformed the QQQ. 

AIQ projects the AI market size to grow to $826.7 billion by 2030 and this means more companies will be investing in AI. It holds net assets worth $3.83 billion and has an NAV of $43.62. It is up 13.49% year-to-date and 19.56% in 12 months. It is up over 95% in five years.

Massive upside potential

Since the fund holds only 86 stocks, you get to hold the best 86 companies in the world. It offers ultimate portfolio diversification by investing in stocks across different countries and has a low expense ratio of 0.68%. 

Its three-year annualized return is and 28.33% and five-year annualized return is 16.48%. Not many have noticed the strong performance shown by AIQ over the past year. Driven by the top tech stocks, AIQ remains one of the best ETFs of 2025 and will continue to dominate the industry throughout the year. As long as the AI demand keeps growing, we could see AIQ impress investors with strong returns. 

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