Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Artificial Intelligence is reshaping the world around us, from the way we shop online to how we diagnose diseases, manage businesses and even drive cars. And with the AI boom showing no signs of slowing, many investors are asking the same question: how can I get a slice of the action without gambling on just one tech company?
Enter AI ETFs- a relatively low-risk, diversified way to invest in the most exciting AI-focused companies across the globe.
In this article, we explore the best AI ETFs to buy in 2025 for UK investors, how to access them, and what to keep in mind before diving in.
Also read: The Best Dividend ETFs to Buy in 2025
AI is transforming industries and creating new opportunities for growth, which makes it an attractive investment in 2025. But picking individual AI stocks can be tricky and risky. ETFs (Exchange Traded Funds) offer a simple solution by allowing you to invest in a basket of AI-related companies through a single trade.
For UK investors, AI ETFs provide global exposure, diversification, and convenience. Better yet, some are listed on the London Stock Exchange (LSE) and qualify for ISAs or SIPPs.
So, which AI ETFs should you be looking at in 2025? Let’s take a look.
If you’re looking for a forward-thinking fund that blends AI innovation with ethical investing, the Invesco AI Enablers UCITS ETF is a strong contender.
This ETF focuses on companies developing and enabling AI technologies. It tracks indices created by Kensho (part of S&P Global), which are well-known for spotting emerging trends in the tech world.
Why we like it:
It’s perfect for investors who want to support innovative AI firms without compromising on ethical values. Its LSE listing makes it particularly accessible for UK investors.
Next up is a fund managed by one of the most trusted names in global asset management: BlackRock.
This ETF offers exposure to a wide range of companies in robotics and AI across various sectors, making it one of the most diversified picks.
If you want broad exposure to the AI theme with the backing of a reputable fund manager, this ETF is worth a look. It balances risk and reward well by investing across multiple industries.
For those who want to focus more narrowly on AI and big data companies, the WisdomTree Artificial Intelligence UCITS ETF could be the answer.
This ETF tracks the NASDAQ CTA Artificial Intelligence Index and is packed with firms at the forefront of AI development.
It’s ideal for investors who believe in AI’s potential to disrupt the global economy and want to go all-in on that theme. The fact that it’s ISA and SIPP eligible is a major plus.
While the above ETFs are UCITS-compliant and UK-friendly, there are a couple of notable international ETFs you can access via platforms that offer overseas trading.
This U.S.-listed ETF focuses on companies that design and build robots and develop AI technologies.
BOTZ is not UCITS-compliant, so you can’t hold it in your ISA or SIPP. And because it’s U.S.-listed, you’ll be exposed to currency risk.
Run by ARK Invest, this fund focuses on companies involved in cutting-edge technologies like AI, autonomous vehicles, and energy storage.
As with BOTZ, it’s not UCITS-compliant and comes with USD exposure. It’s also known for being more volatile due to its high-growth focus.
Before jumping in, here are some important factors to keep in mind:
U.S.-listed ETFs are priced in dollars, so you’ll be affected by exchange rate fluctuations. If the pound strengthens, your returns in sterling could shrink.
Many U.S.-listed ETFs aren’t eligible for ISAs or SIPPs. To maximise tax efficiency, stick with UCITS-compliant ETFs listed on European exchanges like the LSE.
Make sure your trading platform offers access to the ETFs you’re interested in. Not all UK platforms allow international trading, and fees can vary.
All ETFs come with management fees. While the difference between 0.35% and 0.50% might seem small, it adds up over time. Always check the fund’s ongoing charges figure (OCF).
AI is no longer science fiction- it’s becoming the backbone of how modern society operates. From medicine to logistics to creative design, AI is everywhere, and it’s growing fast.
Investing in AI ETFs allows you to ride this wave of innovation without having to bet the farm on one single company. Whether you want a more ethical fund like Invesco AI Enablers, a diversified play from iShares, or a more aggressive thematic approach with ARKQ, there are plenty of options available.
Just remember to consider where the fund is listed, whether it fits your tax-wrapper strategy, and what fees you’re signing up for.
With the right approach, 2025 could be a breakthrough year for your AI investments.
Do you want to learn more about investing? Sign up for our fortnightly MoneyMagpie Investing Newsletter. It’s free and you can unsubscribe at any time.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
Direct to your inbox every week
New data capture form 2023
"*" indicates required fields
Leave a Reply