The artificial intelligence (AI) boom is a wealth-building phenomenon that has created new millionaires since 2022. It’s only rational for Canadian investors to want a piece of this transformative growth today. While the fear of missing out (FOMO) can be a dangerous investment driver, the party is far from over, with billions still pouring into AI infrastructure and innovation accelerating at a breakneck pace.
While the biggest AI companies are domiciled on foreign exchanges, a simple option exists for Canadian investors wondering how to participate without picking individual foreign stocks: Canadian-dollar-denominated AI-focused exchange-traded funds (ETFs). These funds offer a single-ticket approach to gaining diversified exposure to the companies powering the AI revolution. Let’s explore the top Canadian AI ETFs that could help your portfolio catch the next wave of growth.
CI Global Artificial Intelligence Fund ETF (TSX:CIAI)
$912 million
0.60%
Undisclosed
May 2024
Global X Artificial Intelligence Semiconductor Index ETF (TSX:CHPS)
$128.8 million
0.66%
~18
June 2021
Invesco Morningstar Global Next Gen AI Index ETF (TSX:INAI)
$17.7 million
0.38%
48
Jan 2024
Evolve Artificial Intelligence Fund ETF (TSX:ARTI)
$17.6 million
0.60%
60
March 2024
Think of the TD Global Technology Leaders Index ETF (TSX:TEC) as a seasoned veteran in the tech space. While not exclusively an AI fund, its massive $3.5 billion portfolio is packed with the very companies leading the charge. With 234 holdings, it offers broad diversification across global tech giants.
The TEC ETF’s appeal is straightforward: you get access to powerhouse AI players like Nvidia, Microsoft, and Meta Platforms under one roof. This ETF is a compelling choice for investors seeking a proven, low-cost vehicle with a annual management expense ratio (MER) of just 0.39%. A $10,000 investment three years ago, just before ChatGPT’s explosion, would have more than doubled to over $21,000.
Investors seeking a more concentrated AI bet may check out the CI Global Artificial Intelligence Fund ETF (TSX:CIAI), Canada’s largest dedicated AI equity ETF with nearly $1 billion in assets. This fund is actively managed, meaning a team of professionals actively researches and selects companies they believe will benefit most from AI advancements. This hands-on approach comes with a somewhat higher but manageable management fee of 0.55%, following the expiry of a fee waiver midyear this year.
With a heavy weighting in U.S. tech stocks of 84% and Nvidia stock as its top holding at 12.5%, the CIAI ETF is designed for investors who want a focused, professionally curated basket of AI leaders and are comfortable with higher capital risk for potentially greater long-term capital appreciation.
If AI is the brain, semiconductors are the heart, and the Global X Artificial Intelligence Semiconductor Index ETF (TSX:CHPS) offers direct access to this critical niche. As Canada’s first semiconductor ETF, CHPS targets companies that design and manufacture the chips powering everything from data centres to AI-smart devices. This is a tactical, high-conviction investment. The fund tracks an index of 18 chip giants including Nvidia, Broadcom, and Taiwan SemiconductorManufacturing. The ETF is highly concentrated with top 10 holdings comprising over 90% of the portfolio.
With an MER of 0.66%, it’s a bit pricier than some peers, but you’re paying for specialized exposure to the essential hardware behind AI. This TSX AI ETF offers a compelling, targeted opportunity for investors who believe the real gold rush is in selling the picks and shovels.
Two tiny AI ETFs are competing for investor dollars in 2025, and one of them uses AI to augment stock picking.
Launched in early 2024, the Invesco Morningstar Global Next Gen AI Index ETF (TSX:INAI) takes a disciplined, rules-based approach to identify companies expected to reap significant economic benefits from AI. It’s attractive due to its low MER of 0.38% — the lowest among the top five Canadian AI ETFs listed in the table above. It has 48 holdings and is somewhat diversified with tech stocks contributing a 70.6% portfolio weight while telecoms (16.4%) and consumer discretionary stocks (10%) add sector diversity.
What if an AI helps manage your AI investments? That’s the intriguing premise behind the Evolve Artificial Intelligence Fund (TSX:ARTI). This tiny ETF uses an artificial intelligence platform to augment its stock selection and portfolio management. It’s a meta-play for investors comfortable with the idea that machine learning can identify opportunities humans might miss. It has 60 holdings, 99% of which are U.S. stocks.
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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
