This ETF Has Quietly Become One of the Best Ways to Invest in Artificial Intelligence
2026-10-02 11:30
•David Dierking •The Motley Fool
•••• •••• Axe Cap view
Broad AI Exposure Beats Chip-Focused Bets
The Global X AI & Tech ETF (AIQ) offers safer, diversified AI exposure versus semiconductor-heavy picks.
Artificial intelligence is capturing headlines, but chasing big semiconductor names like Nvidia or AMD on the JSE doesn’t translate easily. Neither does a bet on just chips, given how many AI ETFs pile into a handful of hardware companies, risking big drawdowns if one stumbles. The Global X AIQ ETF spreads bets across software, cloud, and chips - 88 stocks in total with only a third in the top 10. For South African investors, this is a neat way to tap AI growth without making a concentrated call on a single tech play, especially since our local listings don’t closely track these giants. Instead, watch Naspers or Prosus, who gain from global tech trends but are far from pure AI proxies. Just remember AI development may take longer or be less commercially transformative than the hype suggests. this is just our opinion and not financial advice
We would watch AIQ for diversified exposure but avoid concentrating portfolios on semiconductor names or single stocks like Naspers for pure AI plays. A small proportion in Naspers or Prosus is reasonable. Keep an eye on USD/ZAR as tech demand and foreign flows shift.
- AIQ
- Naspers
- USD/ZAR
- AI tech adoption slower than expected
- USD strength impacting rand-hedged returns
5/10
The article argues that the Global X Artificial Intelligence & Technology ETF (AIQ) offers a better approach to AI investing than concentrated semiconductor-focused ETFs. With $1 trillion in expected AI spending by 2026, the author recommends broad exposure to the AI theme across multiple segments including software, cloud computing, and hardware rather than betting on individual winners.
Our take is based on reporting first published by The Motley Fool.