ARTY ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
A global thematic ETF covering the entire artificial intelligence ecosystem. It holds a broad range of companies across every stage of the AI supply chain, from semiconductors and cloud infrastructure to software.
SubscribeWhat Is This ETF?
This ETF tracks the Morningstar Global Artificial Intelligence Select Index. It selects and holds global companies that contribute to the advancement of AI technology, including generative AI, AI infrastructure, software, and services.
It suits long-term investors who want to invest in the growth of AI technology and seek diversified exposure to US and global AI-related companies.
It is a passively managed (index-tracking) ETF launched in 2018 by BlackRock (iShares).
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | Morningstar Global Artificial Intelligence Select Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Reflected when the index changes |
| Dividend Frequency | Once a year |
| Total Expense Ratio | 0.47% |
The ETF tracks an index that selects companies that directly contribute to AI technology. Rather than broadly holding technology stocks, it selectively holds companies across every stage of the AI supply chain, including generative AI, data infrastructure, software, and services. The portfolio strikes a balance between semiconductor design and manufacturing companies and cloud and software companies, and it also includes global companies outside the US.
- Diversified exposure across every stage of the AI ecosystem (semiconductors, infrastructure, software, services)
- Joint BlackRock and Morningstar index methodology: built on selection criteria rather than a simple theme
Size and Costs
Assets under management (AUM) stand at $3.7B, and the Expense Ratio is 0.47% per year.
It maintains one of the larger asset bases among comparable AI thematic ETFs, and trading liquidity is stable thanks to BlackRock's management infrastructure.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeSince interest in the AI industry surged, the ETF has seen steady inflows and a significant improvement in returns. As demand for generative AI expands, earnings improvement is expected at semiconductor and cloud infrastructure companies, and growth expectations are high across its holdings.
Growing interest in the AI theme from both institutional and individual investors has kept assets under management on an upward trend. However, valuations of AI-related stocks remain elevated overall, creating an environment in which profit-taking sales may appear during periods of market volatility.
Strengths and Weaknesses
Its strength is diversified exposure across the entire AI ecosystem, while high valuations and concentration risk are its weaknesses.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
Comparable products in the same AI thematic category, shown in the table, include BAI, AIQ, CHAT, and IGPT, each of which holds AI-related companies based on a different index methodology or manager philosophy. LIT gives exposure to the lithium and battery sectors, which are linked to the energy demand of AI infrastructure. Other candidates worth comparing include QQQ, a broad technology ETF based on the Nasdaq 100, SOXX, which focuses on semiconductors, and BOTZ, which specializes in AI infrastructure.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 BAI | iShares A.I. Innovation and Tech Active ETF | $42.55 | +2.9% | $12.8B | 0.55% | 1.39% | +16.5% |
 AIQ | Global X Artificial Intelligence & Technology ETF | $63.66 | +1.1% | $10.1B | 0.68% | 0.07% | +19.9% |
 CHAT | Roundhill Generative AI & Technology ETF | $81.17 | +3.5% | $1.6B | 0.75% | 2.07% | +21.5% |
 IGPT | Invesco AI and Next Gen Software ETF | $91.34 | +2.5% | $1.3B | 0.57% | - | +49.3% |
 LIT | Global X Lithium & Battery Tech ETF | $62.63 | +2.2% | $1.2B | 0.75% | 0.8% | +5.5% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| MU | Micron Technology Inc | 0.05% | $928.76 | +2.8% | $1.05T | 12.5 | 0.08% |
| AMD | Advanced Micro Devices Inc | 0.10% | $560.26 | +5.5% | $914.6B | 143.8 | - |
| MRVL | Marvell Technology Inc | 0.10% | $243.57 | +4.2% | $213.6B | 80.2 | 0.1% |
| CRWV | CoreWeave Inc | 0.05% | $59.57 | +7.9% | $32.9B | - | - |
| TSM | Taiwan Semiconductor Manufacturing ADR | 0.10% | $436.87 | +3.0% | $2.27T | 28.1 | 0.94% |
| NVDA | NVIDIA Corp | 0.05% | $217.94 | +0.9% | $5.25T | 27.6 | 0.36% |
| ORCL | Oracle Corp | 0.05% | $130.53 | +3.5% | $394.7B | 20.5 | 1.51% |
Investor Checkpoints
These are the key points to review before investing in ARTY. Although it is an AI thematic ETF, valuations, sector concentration, and currency effects can influence long-term performance, so they should be checked in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Compare the fee level with similar AI thematic ETFs | Somewhat high |
| 📊 Sector Concentration | Weight of the semiconductor and technology sectors and concentration in top holdings | Heavy tilt toward tech stocks |
| 🌐 Global Exposure | Weight of non-US holdings such as Taiwan and the currency impact | No currency hedge |
| ⚡ Valuation | Check the price-to-earnings level across holdings | Relatively high valuation |
With AI expectations already substantially priced into share prices, short-term volatility could rise sharply if earnings growth falls short of expectations or the interest rate environment shifts. The ETF is also affected by the business cycles of the semiconductor and cloud infrastructure sectors.
It is a suitable choice for long-term investors who want to diversify across the entire AI ecosystem. Those who want broader technology exposure can also compare QQQ, and those who want to focus on semiconductors can compare SOXX.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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