If You Have $10,000 And Want To Bet on AI and Robotics, These Are The Investments I’d Pick

XAIX offers low-cost AI exposure: Its patent-based screening process focuses on companies actively developing AI technologies while keeping fees relatively low at 0.35%.

CHAT takes an active approach: The fund uses proprietary research to identify companies most exposed to generative AI, resulting in a more concentrated and higher-conviction portfolio.

Position sizing still matters: AI remains a high-risk theme, so these ETFs work best as satellite holdings alongside a diversified core portfolio.

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Artificial intelligence and robotics remain among the most popular investment themes on the market. The problem is that a lot of investors approach them the wrong way. Rather than trying to identify the next moonshot startup before everyone else, I generally prefer using thematic ETFs.

Even though thematic ETFs have their flaws, they still provide some diversification and reduce the risk that comes from betting everything on a single stock. That said, investors should still be selective. Many thematic ETFs charge high fees, launch near the peak of a hype cycle, and end up holding little more than an expensive basket of the same technology stocks you could already own through a broad market ETF.

Still, a handful of AI-focused ETFs have proven themselves to be reasonably constructed and worthy of consideration. If I had $10,000 to allocate toward the theme today, these are two funds I would look at: one low-cost passive option and one actively managed fund.

The first ETF is the Xtrackers Artificial Intelligence and Big Data ETF (XAIX) . Unlike many thematic funds that simply screen companies based on current AI-related revenue, XAIX attempts to identify firms actively developing AI technologies.