What Is the BAI ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The iShares A.I. Innovation and Tech Active ETF (BAI) does not track an index. Its portfolio managers select AI ecosystem stocks directly. The key selection criteria are how it differs from passive AI ETFs in management approach, expense ratio, and dividends, along with its outlook.
SubscribeWhat Is the iShares A.I. Innovation and Tech Active ETF?
This is an actively managed ETF with exposure across the entire artificial intelligence technology stack. From semiconductors and cloud infrastructure to AI application software and services, the portfolio managers select and hold stocks across the global market, regardless of market capitalization or sector.
It suits growth-oriented investors who want concentrated exposure to the AI theme and prefer the managers' active stock selection to index tracking.
It is an actively managed ETF run by BlackRock (iShares).
How Does the iShares A.I. Innovation and Tech Active ETF Invest?
| Item | Details |
|---|---|
| Tracking Index | None (active management) |
| Management Style | Active (manager-selected) |
| Rebalancing Frequency | At the managers' discretion |
| Dividend Frequency | Annual |
| Total Expense Ratio | 0.55% |
Through bottom-up fundamental analysis, the portfolio managers select companies that are critical to the development, implementation, and adoption of AI technology. The fund spreads its holdings across the entire AI technology stack, from infrastructure to intelligence to application services, and builds a relatively concentrated portfolio across global markets without index constraints.
- Bottom-up active management with no index tracking
- Global diversification across the AI technology stack
iShares A.I. Innovation and Tech Active ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $13.2B, and the total expense ratio is 0.55% per year.
Even within the same AI theme, the structural difference is that, unlike the index-tracking AIQ and ARTY, this fund selects stocks at the managers' discretion.
iShares A.I. Innovation and Tech Active ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund moves in line with AI-related stocks overall, and it tends to be quite volatile depending on conditions in semiconductors, cloud, and software as well as earnings seasons. Because of its active selection approach, its performance can diverge from passive ETFs in the same theme.
Inflows tend to be strong when market interest in the AI theme is high, and when thematic stocks become more volatile, fund flows can swing as well. Thematic concentration is higher than in broad core ETFs.
iShares A.I. Innovation and Tech Active ETF Pros and Cons
Its strength is concentrated exposure to the AI ecosystem through manager selection. Its weaknesses are volatility from thematic concentration and a somewhat higher fee than passive funds.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the iShares A.I. Innovation and Tech Active ETF
IGPT, AIQ, and ARTY, shown in the table, cover the same AI and technology themes but mostly track indexes, whereas this ETF differs in structure because it relies on active selection at the managers' discretion. You can also consider CHAT, which focuses more narrowly on generative AI, and XLK, which offers exposure across the broad technology sector. Differences in expense ratio and stock selection method are the key selection criteria.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 AIQ | Global X Artificial Intelligence & Technology ETF | $60.14 | -4.5% | $10.2B | 0.68% | 0.07% | +14.1% |
 ARTY | iShares Future AI & Tech ETF | $68.40 | -5.7% | $3.9B | 0.47% | 0.06% | +35.2% |
 CHAT | Roundhill Generative AI & Technology ETF | $75.33 | -7.1% | $1.7B | 0.75% | 2.23% | +13.5% |
 IGPT | Invesco AI and Next Gen Software ETF | $83.71 | -7.5% | $1.3B | 0.57% | - | +38.9% |
 LIT | Global X Lithium & Battery Tech ETF | $59.81 | -1.9% | $1.1B | 0.75% | 0.84% | -5.3% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 FIGB | Fidelity Investment Grade Bond ETF | 0.44% | $41.67 | +0.3% | $0.0M | - | 4.21% |
iShares A.I. Innovation and Tech Active ETF Investor Checkpoints
Here are the points to review before investing in BAI. Because it is an active product concentrated in the AI theme, it is important to understand its volatility, costs, and management approach in advance, and to confirm beforehand that it fits your investment profile.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the fee level that comes with active management | Somewhat higher than passive |
| 🤖 Thematic Concentration | Weighting of exposure to the single AI theme | High concentration |
| 🧭 Management Style | Active selection with no index tracking | Managers' discretion |
| 💱 Exchange Rate | Impact on returns when converted to Korean won | No currency hedge |
Because of its concentration in the AI theme, it can fall more than broad core ETFs during sector corrections. Investors should also keep in mind that, given the nature of active management, results depend heavily on the managers' stock selection decisions.
This is an active ETF suited to investors who want exposure to the entire AI ecosystem through manager selection. If cost and simplicity are your priorities, an index-tracking AI ETF is the more reasonable choice, and if you want active selection, BAI is worth considering.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 21, 2026.
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