5 ETFs to Buy Now to Protect Your Portfolio in the Age of AI
Artificial intelligence is no longer a distant technology trend. It is already transforming how businesses operate, how employees work, and how entire industries compete. Some analysts believe AI could disrupt millions of jobs, especially in entry-level white-collar roles. Others see it as one of the most powerful economic forces since the internet.
Either way, investors face the same challenge: how do you position your portfolio for a world increasingly shaped by AI?
The key is not trying to guess the single winning company. Instead, diversified exchange-traded funds (ETFs) allow investors to capture entire sectors that stand to benefit from AI’s growth while reducing company-specific risk.
Here are five ETFs that may help position a portfolio for the next phase of the AI economy.
1. VanEck Semiconductor ETF (SMH)
If AI has a backbone, it is semiconductors.
Every AI system from ChatGPT to autonomous vehicles—relies on powerful chips to process enormous amounts of data. Companies producing these chips have become some of the most critical players in the global technology ecosystem.
The VanEck Semiconductor ETF (SMH) provides exposure to leading chip manufacturers and designers that power artificial intelligence, cloud computing, and advanced computing infrastructure.
Why it matters:
• AI models require exponentially more computing power
• Chip demand continues to rise across industries
• Semiconductor companies often benefit from long-term structural growth
Rather than betting on one chip company, SMH spreads exposure across many of the major players shaping the AI revolution.
2. Invesco QQQ Trust (QQQ)
Another way to gain exposure to AI is by investing in the companies building the platforms and software that rely on it.
The Invesco QQQ Trust (QQQ) tracks the Nasdaq-100, which includes many of the largest technology companies driving innovation in artificial intelligence, cloud computing, and digital services.
The fund includes major firms involved in AI development, enterprise software, digital infrastructure, and data services.
Why investors look at QQQ:
• Exposure to the largest tech innovators
• Strong historical growth in the technology sector
• Diversified access to AI leaders without picking individual stocks
The trade-off is volatility. Technology stocks can move quickly, both up and down, especially during periods of market uncertainty.
3. Global X Robotics & Artificial Intelligence ETF (BOTZ)
For investors looking for a more direct play on automation, robotics, and AI technology, the Global X Robotics & Artificial Intelligence ETF (BOTZ) focuses on companies developing robotics hardware, automation software, and AI systems.
Automation is expected to reshape manufacturing, logistics, healthcare, and transportation over the next decade.
BOTZ includes companies working on:
• robotics systems
• industrial automation
• machine vision technology
• artificial intelligence platforms
As labor shortages and rising wages push companies toward automation, robotics technology may play an increasingly important role in global productivity.
4. Vanguard Real Estate ETF (VNQ)
While AI is digital, its infrastructure is physical.
Data centers, server farms, warehouses, and logistics facilities are essential for storing and processing the massive amounts of information AI systems require. Real estate investment trusts (REITs) often own these types of properties.
The Vanguard Real Estate ETF (VNQ) offers diversified exposure to the broader real estate sector, including companies that own data centers, commercial properties, and infrastructure tied to digital services.
Why real estate still matters in an AI economy:
• Data centers are critical for cloud computing and AI processing
• The United States still faces a housing shortage
• Real estate provides potential income through dividends
Even in a highly digital future, people still need places to live, work, and store data.
5. Global X U.S. Infrastructure Development ETF (PAVE)
Artificial intelligence requires more than software and chips it requires massive infrastructure.
Electric grids, fiber networks, transportation systems, and industrial construction projects all support the digital economy. AI data centers alone consume enormous amounts of electricity.
The Global X U.S. Infrastructure Development ETF (PAVE) invests in companies involved in infrastructure construction, engineering, industrial equipment, and energy systems.
This sector may benefit from:
• expanding electricity demand from AI data centers
• government infrastructure spending
• modernization of power grids and digital networks
As AI adoption accelerates, the physical infrastructure supporting it becomes increasingly valuable.
Building an AI-Resilient Portfolio
Artificial intelligence may disrupt industries, jobs, and markets, but it also creates opportunities for investors willing to adapt.
Rather than focusing on a single company or trend, diversified ETFs allow investors to participate across multiple sectors driving the AI economy.
These include:
• semiconductors powering AI systems
• technology companies building platforms
• robotics and automation manufacturers
• real estate supporting digital infrastructure
• energy and infrastructure companies enabling data growth
No investment strategy eliminates risk. AI-related investments can be volatile, and valuations in emerging technologies can fluctuate rapidly. However, understanding the industries that support AI can help investors think more strategically about long-term opportunities.
The AI revolution is already underway. For investors, the question is not whether AI will reshape the economy but how to position a portfolio to benefit from it.
Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
