Top AI-Focused ETFs Reshaping the Investment Landscape in 2025: A Data-Driven Breakdown

Performance Surge: Which AI ETFs Are Leading the Charge?

The surge in artificial intelligence investments has created a crowded marketplace of AI-themed exchange-traded funds. Among them, a select few have demonstrated exceptional returns, outpacing broader market benchmarks by a significant margin.

The standout performers year-to-date include:

• Roundhill Generative AI & Technology ETF (NYSEMKT: CHAT): 49.5% return
• VanEck Semiconductor ETF (NASDAQ: SMH): 42.5% return
• WisdomTree Artificial Intelligence and Innovation Fund (NYSEMKT: WTAI): 34% return
• ROBO Global Artificial Intelligence ETF (NYSEMKT: THNQ): Solid double-digit gains
• Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ): Consistent momentum

These results highlight how concentrated interest in artificial intelligence has driven capital into specialized funds. However, year-to-date performance tells only part of the story. A more complete picture emerges when examining longer-term track records.

Beyond the Hype: Long-Term Performance Matters

Short-term returns can be misleading. Serious investors must consider how these artificial intelligence ETFs have performed over multiple time horizons.

The data reveals a critical insight: VanEck Semiconductor ETF stands out for its consistent outperformance across all measured periods. With 222% three-year returns and 264% five-year returns, it has demonstrated that semiconductor exposure—often overlooked in favor of flashier “AI” branded funds—provides a durable path to gains. The fund’s 39.6% one-year return, while solid, is notably less explosive than Roundhill’s 51.9%.

Why Semiconductors Matter in the AI Revolution

The semiconductor industry forms the technological backbone of every artificial intelligence application. GPUs, processors, and memory chips are not optional—they’re essential infrastructure.

Chipmakers are experiencing unprecedented demand driven by data centers racing to deploy AI models and by the proliferation of generative AI applications. This structural tailwind has lifted the entire semiconductor ecosystem.

Analyzing the VanEck Semiconductor ETF: Depth and Breadth

Established in 2011, the VanEck Semiconductor ETF functions as an index fund tracking global semiconductor companies across the entire value chain—from chip design through manufacturing and distribution. The fund holds 25 securities, all trading on major U.S. exchanges.

Cost Structure: An expense ratio of 0.35% is competitive for a thematic index fund.

Total Assets: $35.8 billion under management reflects substantial institutional confidence.

Top Holdings and Their Contribution:

The top five holdings represent 49% of portfolio weight, with the concentration justified by each company’s outsized role in the artificial intelligence ecosystem:

• Nvidia dominates GPU manufacturing, particularly for AI data centers, where its products command premium pricing and margins
• Taiwan Semiconductor Manufacturing serves as the world’s largest contract chip producer, manufacturing designs for customers who lack in-house fabrication capacity
• Broadcom supplies custom AI chips (ASICs) with strong near-term demand visibility
• Advanced Micro Devices competes in GPUs and processors with sustained growth trajectories
• Micron Technology manufactures memory infrastructure increasingly vital for AI workloads

The Roundhill Generative AI & Technology ETF: A Different Approach

Launched in May 2023, Roundhill represents a fundamentally different philosophy. Rather than passively tracking an index, it employs active management to identify companies “actively involved in generative AI”—the category encompassing ChatGPT-style systems that captured public imagination in late 2022.

Cost Structure: The 0.75% expense ratio, more than double VanEck’s fee, reflects the overhead of active stock selection.

Total Assets: $1.05 billion under management is substantially smaller, indicating either relative newness or less institutional adoption.

Holdings Strategy: The fund maintains 44 positions, a more diversified approach than VanEck’s concentrated 25-stock index.

Top Five Holdings:

Key Differences from VanEck:

The top five collectively represent only 25.6% of the portfolio—less than half the concentration seen in VanEck. This reflects active management’s philosophy of diversification across the artificial intelligence ecosystem.

• Nvidia appears in both funds but with lower weighting in Roundhill
• Alphabet and Microsoft receive prominent positions due to their investments in generative AI platforms and cloud infrastructure supporting AI deployment
• SK Hynix, though less familiar to U.S. retail investors, contributes memory manufacturing expertise
• The broader 44-holding structure allows exposure to software, services, and infrastructure companies alongside hardware manufacturers

The Semiconductor Path vs. The Generative AI Path

Both funds capture the artificial intelligence opportunity, but through different lenses:

VanEck’s Approach: Bet on the tools and infrastructure. Semiconductors are the picks and shovels of the AI era. Every GPU sold, every data center built, every AI application deployed requires chips. This creates a structural floor under demand.

Roundhill’s Approach: Identify the most visible players in generative AI—the platform creators and enterprise adopters. Higher volatility, higher potential rewards, but also higher risk if any single company stumbles.

The data suggests VanEck’s longer-term consistency matters. While Roundhill’s 51.9% one-year return is eye-catching, VanEck’s ability to deliver 222% over three years and 264% over five years demonstrates that semiconductor exposure provides a more durable wealth-creation engine.

Which Fund Deserves Your Attention?

For investors seeking exposure to artificial intelligence, the choice hinges on time horizon and risk tolerance. The VanEck Semiconductor ETF merits consideration for its proven track record, lower fees, and diversified semiconductor exposure. The Roundhill Generative AI & Technology ETF appeals to those comfortable with higher volatility in exchange for participation in cutting-edge generative AI innovation.

Notably, both funds have delivered exceptional results—substantially outpacing the S&P 500’s 14.7% one-year and 102% five-year returns. The artificial intelligence opportunity remains robust enough to support multiple investment approaches.