"The S&P 500 had another fantastic year, even though no Santa Claus rally came to town to power a year-end bounce. While the AI trade picked up the turbulence into year's end, odds are that AI-heavy portfolios had an edge over the broad market. And in this piece, we'll go over a trio of AI-focused tech ETFs that outperformed the S&P last year and could make for a great addition to the portfolios that don't have quite enough exposure to the AI revolution."
"While AI bubble concerns might steer you away from more AI exposure, I do think that a strong showing by the likes of Nvidia ( NASDAQ:NVDA), as well as the rise of agentic AI, could help spark more strength in the group of innovators as they look for guidance after a quarter of relative consolidation. In short, the AI trade might be a bit on the expensive side, but a bubble and its bust are not guaranteed."
"First up, we have the Global X Artificial Intelligence & Technology ETF ( NASDAQ:AIQ), which is one of the most popular AI ETFs on the market. Over the past year, shares gained more than 37%. And while the final quarter of 2025 got increasingly choppy, it appears the high-growth ETF looks ready to break out and pick up where it left off before shares briefly fell into correction territory back in November."
The S&P 500 finished the year strongly despite the absence of a year-end Santa Claus rally. AI-driven volatility increased late in the year, yet AI-heavy portfolios generally outperformed the broad market. Nvidia's strong performance and the emergence of agentic AI could renew momentum among AI innovators after a consolidation quarter. The AI trade appears expensive, but a broad market bubble and inevitable bust are not certain, even as skeptics warn of overheating. Several AI-focused tech ETFs outperformed the S&P in 2025 and may offer additional exposure for portfolios underweight AI. Global X AIQ gained over 37% and pursues an unconstrained, global approach to AI innovators.
Read at 24/7 Wall St.
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