The Global X Artificial Intelligence & Technology ETF (AIQ) emerged as one of 2025’s standout performers, delivering a remarkable 31% return that outpaced the broader Nasdaq Composite index. This performance highlights the continued momentum in AI-focused investments as the technology transitions from experimental to essential across multiple industries.
I’ve been tracking AIQ since its inception, and what makes 2025’s performance particularly noteworthy is how the fund managed to excel despite the market’s periodic volatility. The ETF’s strategic exposure to both established tech giants and specialized AI innovators created a balanced growth profile that proved resilient throughout the year.
AIQ’s portfolio construction deserves close examination. Unlike some tech-focused funds that concentrate heavily on the handful of mega-cap leaders, Global X has maintained a thoughtful mix that includes mid-cap companies developing cutting-edge AI solutions. This diversification strategy paid dividends when several of these smaller holdings announced breakthrough applications in healthcare diagnostics and industrial automation.
The fund saw particularly strong gains following the third quarter earnings season, when multiple portfolio companies reported AI-driven revenue growth exceeding analyst expectations. According to data from FactSet, companies comprising roughly 40% of AIQ’s holdings mentioned expanded AI initiatives during earnings calls – nearly double the rate from 2024.
“What we’re witnessing isn’t merely speculative enthusiasm, but rather the market recognizing tangible returns on AI investments,” noted Katherine Chen, senior technology analyst at Morningstar. “AIQ has benefited from exposure to companies that have successfully monetized their AI capabilities rather than simply announcing ambitious plans.”
The ETF’s performance becomes even more impressive when considering the macroeconomic headwinds that periodically challenged markets throughout 2025. While the Federal Reserve’s cautious approach to interest rates created uncertainty for growth stocks, AIQ demonstrated remarkable resilience during these episodes of market stress.
Looking at sector contribution, enterprise software companies developing AI-powered business intelligence tools drove approximately 35% of the fund’s total return. These firms have successfully transitioned from selling AI as a premium feature to making it a core component of their platforms, resulting in expanded margins and recurring revenue growth.
Hardware manufacturers represented in the fund also performed admirably as demand for specialized AI processing capabilities continued to outstrip supply. Several semiconductor holdings announced expanded production capacity specifically targeted at machine learning applications, driving share price appreciation on forward-looking growth projections.
The fund’s performance wasn’t without periodic challenges, however. A mid-year correction triggered by concerns about AI development costs temporarily pressured returns before a strong rebound in the fourth quarter. This pattern highlights an important characteristic of AIQ – its performance tends to amplify both the highs and lows of the broader technology sector.
When comparing AIQ to other technology-focused ETFs, its intentional AI emphasis proved advantageous in 2025. The fund outperformed the Technology Select Sector SPDR Fund (XLK) by approximately 7 percentage points, demonstrating the market’s preferential valuation of AI-centric business models.
“Global X positioned AIQ at the intersection of two powerful investment themes – technological innovation and artificial intelligence specialization,” explained Marcus Williams, ETF strategist at Capital Market Insights. “Their curation of companies with proven AI implementation rather than merely theoretical applications has been particularly effective in this market environment.”
From my perspective covering fintech and emerging technologies, AIQ’s 2025 performance reflects a market that’s increasingly sophisticated in how it values artificial intelligence capabilities. Investors have moved beyond rewarding companies for merely mentioning AI initiatives to demanding evidence of practical implementation and return on investment.
For investors considering exposure to AIQ, it’s worth noting that the fund’s expense ratio of 0.68% remains unchanged from 2024. While this places it at the higher end of the ETF cost spectrum, the specialized focus and active management approach provide justification for the premium, especially given the performance delivered.
As we move deeper into 2026, the key question for AIQ investors will be whether the fund can maintain its momentum as AI technologies become increasingly standardized. The potential emergence of new regulatory frameworks governing artificial intelligence also bears watching, as compliance requirements could impact development timelines and implementation costs for portfolio companies.
What makes AIQ particularly intriguing as an investment vehicle is how it provides exposure to the full artificial intelligence ecosystem rather than concentrating solely on the most visible players. This comprehensive approach has proven effective in capturing value creation across the AI development chain, from fundamental research to practical applications.
