Two AI-Focused ETFs for Smart Portfolio Moves in 2026

As 2025 winds down, investors who bet on artificial intelligence stocks like Nvidia and Palantir Technologies have watched their portfolios soar while others lag behind the broader market. The question now: how can you confidently position yourself for continued AI growth in 2026?

Rather than trying to pick individual winners and losers, two exchange-traded funds offer a practical solution: the Roundhill Generative AI and Technology ETF (CHAT) and the iShares Future AI and Tech ETF (ARTY). Both take different approaches to capturing the AI boom, making them worth understanding before you decide which fits your portfolio.

The Case for Concentrated AI Exposure: Roundhill CHAT

The Roundhill ETF focuses exclusively on companies building the core infrastructure, platforms, and software powering artificial intelligence. What sets it apart is active management—Roundhill’s team continuously adjusts holdings to chase the best returns.

With only 49 stocks in its portfolio, this fund is highly concentrated. Its top five holdings make up nearly 27% of the total value:

• Alphabet (7.53%)
• Nvidia (6.11%)
• Microsoft (5.13%)
• Meta Platforms (4.28%)
• Palantir Technologies (3.67%)

These five companies averaged a 56% return in 2025, helping push the Roundhill ETF to a year-to-date gain of 47%—nearly three times the S&P 500’s 17% performance.

Why have these companies led the charge? Alphabet just posted accelerating revenue growth in Google Search, driven by AI-powered features like AI Overviews. Meanwhile, its Google Cloud segment is racing to fill a massive $155 billion backlog from customers waiting for new AI data center capacity. Microsoft, Meta, and other tech giants are simultaneously gobbling up Nvidia chips to power their AI initiatives—whether that’s Meta’s open-source Llama models, Microsoft’s Copilot assistant, or cloud services through Azure.

The tradeoff: an expense ratio of 0.75% is steep compared to passive index funds that charge just 0.03%. However, the fund’s impressive returns since launch in 2023 have more than compensated for those costs.

The Infrastructure Play: iShares ARTY

The iShares ETF casts a wider net, including 51 companies from the U.S. and globally. Rather than focusing only on AI software leaders, it emphasizes the infrastructure and semiconductor suppliers underpinning the entire AI ecosystem.

Its top five holdings tell a different story:

• Advanced Micro Devices (5.48%)
• Vertiv Holdings (5.25%)
• Nvidia (4.28%)
• Advantest Corp (4.06%)
• Broadcom (3.96%)

This portfolio reflects a bet on the picks-and-shovels side of the AI gold rush. Advanced Micro Devices is preparing to launch the MI400 GPU series in 2026, which analysts believe could lead in performance and challenge Nvidia’s dominance. Broadcom manufactures AI accelerators—customizable alternatives to GPUs favored by major cloud operators—plus critical networking gear that controls data flow across AI systems. Vertiv provides the cooling, power, and infrastructure solutions that keep data centers running, and its stock has surged more than tenfold since the AI boom began in early 2023.

With an expense ratio of just 0.47%, the iShares ETF has delivered a 28% return this year despite lower fees, still crushing the S&P 500.

Which Direction Suits Your Portfolio?

The choice comes down to your investment thesis. Choose Roundhill if you want confidently concentrated exposure to AI software and platform leaders. Choose iShares if you believe the real opportunity lies in the infrastructure and semiconductor companies enabling AI at scale.

Both options beat trying to pick individual stocks in an unpredictable market. As AI continues reshaping 2026’s investment landscape, adding one or both of these ETFs to your portfolio could be the smart move.