With AI demand continuing to soar, investors are looking for an easy way to invest without choosing individual stocks. iShares, one of the largest ETF providers, offers several AI-focused ETFs. Let’s take a look at the two such ETFs that stand out for giving broad, diversified exposure to the companies driving the AI boom.
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Trade NVDA with leverage1. iShares Expanded Tech Sector ETF (IGM)
IGM provides exposure to the companies building and enabling AI. It holds a mix of mega‑cap leaders and fast‑growing software stocks, making it an easy way to invest in the full AI ecosystem, from cloud platforms to chipmakers to data-driven applications.
Some of the top holdings in the IGM ETF include Nvidia (NVDA), Apple (AAPL), and Microsoft (MSFT). Overall, the ETF has $7.89 billion in assets under management (AUM) and an expense ratio of 0.39%. Over the past year, the IGM ETF has generated a return of 51.85%.
On TipRanks, IGM has a Strong Buy consensus rating based on 236 Buys, 46 Holds, and five Sells assigned in the last three months. At $163.37, the average IGM ETF price target implies 27.93% upside potential.
2. iShares A.I. Innovation and Tech Active ETF (BAI)
The BAI ETF invests in companies developing or using AI across software, semiconductors, cloud computing, and automation. As the ETF is not tied to a fixed index, BAI can shift toward emerging leaders or fast-growing niches within the AI ecosystem.
Nvidia, Broadcom (AVGO), and Taiwan Semiconductor (TSM) are some of the top holdings in the BAI ETF. The ETF has $9.76 billion in AUM and an expense ratio of 0.55%. Over the past year, the BAI ETF has generated a return of 77.3%.
On TipRanks, BAI has a Moderate Buy consensus rating based on 32 Buys and two Holds assigned in the last three months. At $41.11, the average BAI ETF price target implies 8.24% upside potential.
