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.
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.
What AI Means
The initials “AI” – “ai” in lower case, stand for Artificial Intelligence. It’s a special technology that aims to enable computers to think and act for themselves in a more human way. The way it does this is by extracting information from its surroundings and then using that information to work out answers and responses to situations.
It can be used to impact the way we live and work and use our spare time.
As artificial intelligence (ai) advances and evolves, it becomes more clever and astute thanks to machine learning. This enables computers to learn from the mistakes they make and take a different approach to a problem or situation next time round.
Generative AI and OpenAI
There is also a branch of AI known as “generative AI,” which, as the name implies, 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 (GPT-5). OpenAI is rated as one of the top 3 AI labs on the planet and is thought to be worth in the region of $20 million. Currently, the company is not publicly traded, so you won’t find an OpenAI stock price.
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.
This comes alongside approximately £900 million, which has also been allocated in the budget for AI research and developing an exascale computer model capable of completing in excess of one quintillion calculations in one second.
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 AI stock trade 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 2025 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 gave a good investment plan, stock picking is an option. According to Forbes, the top 5 best AI companies with the best AI stocks for 2025 are:
- Adobe (ADBE)
- Alphabet (GOOGL)
- Amazon (AMZN)
- Baidu (BIDU)
- C3 AI (AI)
Although outside the top 10 at the time of writing, other stocks to keep an eye open for include:
- Air Liquide
- Benevolent AI
- Big Bear
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.
Rather than choosing individual stocks, ETFs give you diversified exposure to a range of companies developing or benefiting from AI technologies.
Here are some of the reasons why AI ETFs could make sense for long-term investors.
Diversification Across Industries
- ETFs hold a basket of assets rather than a single company’s shares.
- This built-in diversification helps 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.
- Moneyfarm’s core-satellite approach further limits exposure by capping high-growth themes like AI to 5–20% of your total portfolio.
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.
Example of AI-Themed Exposure
A Moneyfarm thematic portfolio might include the WisdomTree Artificial Intelligence UCITS ETF, which invests in global AI leaders, and Air Liquide (clean energy), which can provide further balance and exposure to sustainability-driven innovation.
How to invest in AI ETF with Moneyfarm
If you want to invest in AI stock, you can invest in ETF AI focussed portfolios by simply clicking “Get Started”.
Moneyfarm Share Investing: Smart, simple, secure
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.
Moneyfarm’s 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
Those looking to diversify their portfolio and gain exposure to the AI industry may find that investing in an AI ETF is a good option. AI is one of the strongest megatrends there is, which is the main reason why you should invest now but only 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.
*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.
