What is an AI ETF?
AI ETFs have delivered exceptional returns as the artificial intelligence investment cycle has intensified. An AI ETF is an exchange-traded fund that invests in a basket of companies connected to artificial intelligence. These range from semiconductor companies that build the chips AI models run on (Nvidia, TSMC, Broadcom) to software companies creating large language models, cloud platforms enabling AI deployment, and enterprises integrating AI into their products. Unlike a broad market ETF, an AI ETF is a thematic fund: it concentrates on a specific investment thesis rather than the entire market.
For UK investors, the relevant universe is UCITS-compliant AI ETFs listed on European exchanges. These are accessible through our stocks and shares ISA and share dealing account. US-listed AI ETFs (BOTZ, AIQ, IRBO) are not directly available to UK retail investors for direct purchase, but UCITS equivalents covering similar indices are available.
L&G Artificial Intelligence ETF (AIAG)
The L&G Artificial Intelligence ETF, trading under the ticker AIAG, tracks the ROBO Global Artificial Intelligence Index. It posted the best rolling 12-month performance among the major UCITS AI ETFs at 50.93% to end-May 2026 (Finary, June 2026). AIAG concentrates on companies that derive a significant share of revenue directly from AI, rather than companies that merely use AI as a tool. Its ongoing charge of 0.49% is at the higher end of the peer group. Source: InvestEngine (August 2026).
Xtrackers AI & Big Data UCITS ETF (XAIX)
The Xtrackers AI & Big Data ETF is the largest European UCITS AI-themed ETF by AUM at over €7 billion, a scale that provides significant liquidity and tight bid-ask spreads for UK investors. It tracks the Nasdaq Global Artificial Intelligence and Big Data Index at a competitive 0.35% ongoing charge.
WisdomTree Artificial Intelligence UCITS ETF (WTAI/INTL)
The WisdomTree AI ETF (WTAI/INTL) tracks the Nasdaq CTA Artificial Intelligence Index, designed to capture companies across the full AI value chain: AI enablers (semiconductor companies, cloud infrastructure), AI enhancers (companies that use AI to improve products) and AI end users (companies applying AI in their core business). This breadth means INTL holds a wider range of names than pure-AI alternatives, including companies across sectors using AI as an operational tool. OCF: 0.40%.
How to invest in AI with an ETF
AI ETFs are accessible through our stocks and shares ISA and share dealing account. They can also be traded short-term using spread bets and CFDs for leveraged, intraday or swing trading exposure to the AI theme. Spread bet profits are generally free from CGT for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
For investors who want more direct exposure to individual AI stocks rather than a fund, Nvidia is the most widely held single name in the AI infrastructure trade. Its dominance of the AI accelerator market is reflected in its position as the largest holding in most AI ETFs. Individual share exposure concentrates risk further than a fund; it suits investors with high conviction in a specific stock rather than the broader theme.
AI ETF FAQs
What is the best AI ETF for UK investors?
The best AI ETF depends on your investment objectives. For concentrated pure-play AI exposure with the strongest recent performance, L&G AI (AIAG) posted a 50.93% rolling 12-month return to end-May 2026. For the largest and most liquid fund, Xtrackers AI & Big Data (XAIX) with over €7 billion in AUM provides the deepest liquidity. For full AI value chain coverage, WisdomTree INTL tracks a broader universe. All are accessible as UCITS ETFs through our platform. This is not personal investment advice.
How do I invest in artificial intelligence ETFs in the UK?
UCITS AI ETFs including AIAG, XAIX and INTL are accessible through our stocks and shares ISA and share dealing account. Search for the ETF ticker on our platform. No dealing commission applies on eligible ETFs through the ISA. Gains and income within the ISA are permanently free from UK tax.
Are AI ETFs high risk?
Yes. AI ETFs are thematic, concentrated funds that carry significantly higher risk than broad global equity ETFs. They are dominated by technology stocks and often have Nvidia as their largest single holding. Their performance is strongly linked to the AI investment cycle, which can reverse sharply. They are best treated as a satellite allocation alongside a diversified core portfolio, not as a primary holding.
Capital at risk. The value of investments can go down as well as up, and you may get back less than you invest.
This article is not personal investment advice. Do not invest solely based on what you read here. Past performance is not a reliable indicator of future results.
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