After Comparing Every AI ETF, These 3 Beat the Nasdaq Without Betting on a Single Stock
After Comparing Every AI ETF, These 3 Beat the Nasdaq Without Betting on a Single Stock
David BerenMon, August 3, 2026 at 5:06 PM UTC
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IGPT and CHAT have delivered 47% and 39% year-to-date gains in 2026, each beating the Nasdaq while keeping no single position above 7%.
Foreign chip suppliers like Samsung and TSMC are excluded from the Nasdaq 100, and their inclusion in AI ETFs gives those funds structural exposure that drives their outperformance over QQQ.
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The Nasdaq 100 has climbed roughly 11% so far in 2026, a respectable run in a year that has been unkind to speculative growth. Every AI ETF worth screening had to clear that bar to justify its extra fees and thematic risk. Three did so with room to spare: Invesco AI and Next Gen Software ETF (NYSEARCA:IGPT), Roundhill Generative AI & Technology ETF (NYSEARCA:CHAT), and Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ).
Each of the three has topped the Nasdaq year to date and over the trailing year, and none of them lean on a single stock to do it. The largest position in any of the three sits at roughly 7% of assets. That matters because many thematic funds marketed as AI plays essentially replicate a top-heavy Nasdaq exposure and charge more for the packaging. These three take different paths to the same result.
Why AI ETFs Have Outrun the Index
The performance gap between AI-labeled funds and the Nasdaq 100 in this cycle has less to do with brilliant stock picking than with what QQQ leaves out. Foreign chip and memory suppliers such as Samsung, SK hynix, and TSMC sit outside the Nasdaq 100 and have carried a disproportionate share of the AI capex cycle. Any AI ETF that owns them in size has structural exposure the index cannot replicate. That is the structural mechanism behind the performance gap.
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Invesco AI and Next Gen Software ETF (IGPT)
In the growth-focused ETF space, IGPT stands out on this list by returns. The fund is up roughly 47% year to date and about 73% over the past year, well ahead of the Nasdaq 100’s 20% one-year gain. It tracks the STOXX World AC NexGen Software Development index, which screens for companies generating meaningful revenue from AI, big data analytics, and next-generation software, according to Invesco’s prospectus filing.
The investment logic is narrower than the name suggests. IGPT weights toward semiconductor and software firms with direct AI product exposure rather than a broader technology basket. That concentration explains both the outperformance and the volatility. The fund pulled back about 12% in the past month as high-multiple software names sold off, a reminder that the same holdings driving the gains can move quickly in reverse.
Assets under management sit near $875 million, modest for an Invesco fund and small enough that bid-ask spreads can widen during turbulent sessions. Investors comfortable with a more concentrated software and semiconductor tilt are the natural audience. Those looking for a diversified AI holding may find the sector bet uncomfortable.
Roundhill Generative AI & Technology ETF (CHAT)
In the AI-focused ETF space, CHAT is the actively managed option and the only fund on this list built specifically around generative AI. The fund is up about 39% year to date and roughly 65% over the past year, with manager discretion determining what qualifies as a generative AI beneficiary.
The portfolio holds 41 positions with net assets of roughly $1.4 billion. Alphabet is the top holding at roughly 7%, followed by NVIDIA at about 7% and AMD at about 5%. The top 10 account for roughly 45% of assets.
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Where CHAT earns its place on the list is the second half of the portfolio. Beyond the mega-caps, the fund owns AI infrastructure names that most passive AI ETFs miss entirely: CoreWeave at 1.85%, Astera Labs at 2.72%, Nebius Group at 2.06%, and Credo Technology at 1.39%. These are the picks-and-shovels businesses supplying GPU cloud capacity, AI interconnect silicon, and data center networking gear. That is exposure a Nasdaq index fund cannot deliver.
Active management carries a cost. The 24/7 Wall Street AI Investor podcast has cited an expense ratio of about 0.75% for CHAT, higher than passive alternatives. The tradeoff is a portfolio that responds to what is actually happening in generative AI rather than waiting for an index provider to rebalance.
Global X Artificial Intelligence & Technology ETF (AIQ)
In the AI ETF space, AIQ is the broadest and most diversified fund on this list, and it is also the cheapest by a wide margin at 0.68%, according to its annual shareholder report. Assets sit near $7 billion, giving it the deepest liquidity of the three. Year-to-date returns of roughly 15% and one-year returns of about 30% trail its peers here, but both still come in ahead of the Nasdaq benchmark.
The top holding is Alphabet at 4.5%, with Broadcom, Samsung Electronics, and AMD each near 3.7% to 3.8%. The portfolio is a mix of US mega-caps, Asian semiconductor and memory suppliers, and Chinese internet platforms including Alibaba at 3.5% and Tencent at 3%. That international sleeve is where the outperformance versus QQQ comes from, since none of those foreign names sit in the Nasdaq 100.
The tradeoff with AIQ is muted upside. Because the fund is more diversified and holds Apple, Cisco, and Tesla alongside pure AI names, its return profile behaves more like a global tech index than a focused AI bet. The 24/7 Wall Street AI Investor podcast has described AIQ as "a solid option" for investors who want a single ETF with broad diversification and meaningful differentiation from QQQ, which captures the appeal well.
Which Fund Fits Which Investor
The three funds serve genuinely different investors. IGPT is the most aggressive expression of the theme, with the highest returns and the sharpest drawdowns. Investors who want the current cycle's leaders concentrated in one product will find it here, along with the volatility that comes with the territory.
In the AI ETF lineup, CHAT sits in the middle. Its active mandate and meaningful allocation to smaller AI infrastructure names provide exposure that no passive fund truly replicates. It fits investors who believe security selection matters in a fast-moving theme and are willing to accept a higher expense ratio for that approach.
The broad, low-cost option is built for investors who want AI exposure without straying far from the mainstream. A 0.68% expense ratio, deep liquidity, and international diversification make it better suited as a core holding rather than a satellite position. Its returns will likely trail more concentrated funds in strong years but help cushion the downside in weaker markets.
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Source: “AOL Money”
