These Canadian AI ETFs Offer One-Click Exposure to a Rapidly-Growing Industry

ByDan Kent Published On:

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        Key takeaways

        Global vs. Domestic Exposure – Some ETFs concentrate on Canadian-listed AI companies, while others provide global access to AI leaders.

        AI Growth Potential – The AI sector is expanding rapidly, with investments in robotics, automation, and big data shaping the future.

        Diverse Approaches – These ETFs vary in focus, from hardware and software to automation and machine learning applications.

        One ETF I like way better than the ones on this list.

        Artificial intelligence stocks have exploded in popularity as of late. With the evolution of Chat GPT, autonomous cars, and even AI bots in healthcare to improve the hands-on education students will get, it seems like AI is touching every area of the economy.

        Despite the industry’s massive size at this point, artificial intelligence is clearly in its infancy. For investors, this creates an enormous opportunity to get exposure to the industry and reap the benefits of its growth.

        However, this is easier said than done. Picking individual stocks in the AI sector poses significant risks. Valuations are high, and the performance of many of the companies exposed to AI will need to be perfect for the price to continue appreciating.

        I like to call this “priced to perfection.”

        So, for many investors, buying the entire industry via an AI ETF will likely be the route they take. Instead of picking the wrong horse in the race, you can buy a basket of stocks exposed to artificial intelligence, and if one company inside the portfolio stumbles, it will have a muted impact on the ETF as a whole.

        This is the beauty of exchange-traded funds.

        For this reason, I’m going to dive into five of the best AI ETFs to buy here in Canada right now.

        What are the top AI ETFs in Canada right now?

        AI infrastructure & computing power

        Global X Big Data & Hardware Index ETF (TSE:HBGD)

        HBGD targets companies involved in AI hardware, big data processing, and cloud computing. It focuses on firms that provide the foundational infrastructure for AI advancements, including semiconductor manufacturers and high-performance computing firms.

        • Focus on AI Infrastructure – The fund emphasizes the backbone of AI, including semiconductor companies and data centers.
        • High Growth in Cloud & AI Chips – Companies like Nvidia and AMD are driving AI computing advancements.
        • Demand for Data Processing – AI relies on massive data sets, benefiting firms that specialize in storage and processing.
        • Diversified Exposure to AI Enablers – Instead of AI applications, this ETF captures the hardware and infrastructure essential for AI development.
        • A Play on Digital Transformation – As industries shift toward digitalization, big data and AI adoption will accelerate.
        • AI Chip Wars – The race to develop the most powerful AI processors is heating up.
        • Cloud Computing Expansion – AI’s reliance on cloud services will continue driving demand.
        • Quantum Computing Breakthroughs – Future AI applications may benefit from emerging quantum computing technologies.
        • Semiconductor Market Cycles – Chip demand fluctuates with industry trends.
        • Competition in AI Hardware – Leading AI firms compete aggressively in innovation.
        • Regulatory & Geopolitical Risks – AI infrastructure is subject to export controls and tech regulations.

        Broad AI & robotics exposure

        Global X Robotics & AI Index ETF (TSE:RBOT)

        RBOT provides diversified exposure to companies in artificial intelligence, automation, and robotics. It includes firms developing AI-driven software, autonomous vehicles, and industrial automation solutions.

        • AI & Robotics Convergence – The ETF covers both AI-driven software companies and industrial automation firms.
        • Exposure to Leading AI Firms – Includes global leaders in AI, such as Alphabet, Tesla, and Microsoft.
        • Strong Industrial Applications – Robotics is revolutionizing industries such as manufacturing, logistics, and healthcare.
        • Automation Growth in Multiple Sectors – AI-driven automation is expanding into finance, retail, and cybersecurity.
        • Balanced Risk Profile – A mix of AI software and hardware companies reduces sector-specific risks.
        • Growth of AI in Manufacturing – Smart factories are integrating AI at a rapid pace.
        • Autonomous Vehicles – Self-driving technology is advancing, with major companies investing heavily.
        • AI in Healthcare – Machine learning is transforming diagnostics and drug discovery.
        • Market Volatility – Tech stocks are prone to high volatility.
        • Regulatory Scrutiny on AI – Governments are considering regulations on AI ethics and data privacy.
        • Adoption Challenges – Some industries face resistance to AI-driven automation.

        Actively managed AI stock selection

        CI Global Artificial Intelligence ETF (TSE: CIAI)

        CI Global Artificial Intelligence ETF (CIAI) is an actively managed fund that invests in global companies leading AI innovation. It focuses on firms developing and implementing AI across various industries, including technology, healthcare, finance, and automation.

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        • Actively Managed for AI Leaders – Unlike passive ETFs, CIAI adjusts its holdings based on AI market trends and emerging opportunities.
        • Broad AI Industry Exposure – Covers AI applications across multiple sectors, including robotics, machine learning, and cloud computing.
        • Focus on High-Growth AI Companies – Includes both established tech giants and smaller, high-potential AI firms.
        • Potential for Outperformance – Active management allows for strategic reallocation to capitalize on AI breakthroughs.
        • Diversified Across AI Sub-Sectors – The fund spans AI infrastructure, software, automation, and data analytics.
        • AI in Enterprise Software – AI-powered automation is transforming corporate efficiency.
        • Generative AI Boom – Investments in language models and creative AI tools are surging.
        • Healthcare AI Innovations – AI is revolutionizing diagnostics, drug discovery, and patient care.
        • AI in Autonomous Systems – Self-driving technology and smart robotics are gaining momentum.
        • Higher Management Fees – Active funds tend to have higher expense ratios than passive index ETFs.
        • Stock Selection Risk – Success depends on the fund manager’s ability to identify winning AI stocks.
        • Volatility in AI Stocks – Many AI-focused companies are high-growth stocks, which can be volatile.

        AI-driven tech & automation

        Global X Artificial Intelligence & Technology ETF (AIQ) 

        AIQ provides global exposure to companies integrating AI across technology sectors, including cloud computing, software development, and automation. It includes firms leveraging AI for efficiency and innovation.

        • Global Exposure to AI Innovation – Includes companies from the U.S., Asia, and Europe.
        • Focus on AI-Enabled Technology – Covers cloud computing, cybersecurity, and AI-powered automation.
        • Strong Holdings in Tech Giants – Includes major AI players like Amazon, Nvidia, and Microsoft.
        • Long-Term AI Adoption – AI is expected to impact every industry, ensuring sustained demand for AI-driven tech.
        • Diversification Beyond AI Pure-Plays – The fund includes companies leveraging AI rather than just developing it.
        • AI in Cybersecurity – AI-driven threat detection is becoming a cybersecurity standard.
        • Cloud-Based AI Solutions – Software as a Service (SaaS) firms are integrating AI at scale.
        • 5G & AI Synergies – Faster connectivity will enable real-time AI applications.
        • Tech Sector Overweight – High exposure to tech companies means susceptibility to downturns.
        • Market Saturation in AI Software – Competition is increasing among AI service providers.
        • Potential for AI Regulation – Governments may impose restrictions on AI data usage.

        Robotics & automation revolution

        Global X Robotics & Artificial Intelligence ETF (BOTZ)

        BOTZ focuses on robotics and AI-driven automation companies, particularly in manufacturing, logistics, and healthcare. It provides exposure to firms that are automating industries and enhancing efficiency.

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        • Industrial Robotics Boom – The fund captures the rising adoption of automation in manufacturing.
        • AI in Logistics & Warehousing – Robotics is transforming supply chains and warehouse operations.
        • Healthcare AI & Surgical Robotics – The medical field is increasingly relying on AI-driven robotic systems.
        • Exposure to Leading Robotics Firms – Includes top players like Intuitive Surgical and ABB.
        • Long-Term Growth in Automation – AI-driven robots will continue replacing human labor in repetitive tasks.
        • AI-Driven Supply Chains – Logistics firms are optimizing operations using AI.
        • Surgical Robotics Expansion – Robotic-assisted surgeries are growing in adoption.
        • AI in Agriculture – Autonomous farming equipment is improving efficiency.
        • Capital-Intensive Industry – Robotics companies require significant R&D investments.
        • Slower Adoption in Certain Sectors – Some industries resist full AI automation.
        • Economic Sensitivity – Automation investments slow during economic downturns.

        Overall, these five funds are a good start

        Here in Canada, we don’t have much choice when it comes to AI ETFs. Our market simply isn’t big enough, and many major fund managers, such as Blackrock, BMO, and Vanguard, haven’t adopted artificial intelligence ETFs in Canada.

        However, with the industry being so young, I wouldn’t be surprised if I continually added new funds to this list as more are brought to market.

        If you’re interested in getting exposure to AI, chip development, database development, or even robotics, these five funds are certainly worth adding to your watchlist.

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