AIQ vs IYW

Key Takeaways

• AIQ offers targeted global exposure to AI and big data companies across sectors and geographies with 84 holdings, while IYW provides broad U.S. technology sector coverage with 139 holdings.
• IYW has a lower expense ratio (0.38%) compared to AIQ (0.68%), enhancing long-term cost efficiency.
• AIQ's top holdings include international names like SK Hynix (6.31%) and Samsung Electronics (4.75%), diversifying beyond U.S. mega-caps; IYW is concentrated in NVDA (16%) and AAPL (13.5%).
• Both exhibit high volatility tied to tech cycles, but IYW's U.S. focus amplifies sensitivity to domestic earnings and rate expectations.
• AIQ emphasizes thematic AI adoption (75.7% information technology), while IYW tracks general U.S. tech (primarily semiconductors and software).
• Recent capital flows favor AI themes amid infrastructure buildout, positioning AIQ for broadening adoption but IYW for mega-cap dominance.

Introduction

In the rapidly evolving technology landscape, AIQ and IYW represent compelling options for investors seeking exposure to innovation-driven growth. AIQ targets companies benefiting from artificial intelligence and big data advancements globally, while IYW delivers diversified access to the U.S. technology sector. These ETFs do not compete directly but offer alternative strategies: AIQ's thematic focus appeals to those betting on AI proliferation, whereas IYW provides broader sector stability. With AI infrastructure demands surging and U.S. tech giants leading market cycles, comparing their structures, exposures, and positioning helps investors align with current trends in sector rotation and thematic investing.

Global X Artificial Intelligence & Technology ETF (AIQ) Overview

The Global X Artificial Intelligence & Technology ETF (AIQ) is a passive thematic ETF that seeks to correspond to the Indxx Artificial Intelligence & Big Data Index. Launched in 2018, it invests at least 80% of assets in companies involved in AI development, utilization, and big data hardware/software. With 84 holdings and $9.76 billion in assets under management (AUM), AIQ adopts an unconstrained approach without sector or geographic limits.

Top holdings as of May 2026 include SK Hynix Inc. (6.31%), Micron Technology Inc. (MU, 5.08%), Intel Corp. (INTC, 5.07%), Samsung Electronics Co. Ltd. (4.75%), and Advanced Micro Devices Inc. (AMD, 4.59%). Sector allocation features information technology at 75.7%, communication services at 9.6%, consumer discretionary at 8.5%, and industrials at 5.5%. The expense ratio is 0.68%, with a tight 30-day median bid-ask spread of 0.02%, indicating strong liquidity. Rebalancing follows the index methodology, emphasizing durable AI exposure.

iShares U.S. Technology ETF (IYW) Overview

The iShares U.S. Technology ETF (IYW) is a passive sector ETF tracking the Russell 1000 Technology RIC 22.5/45 Capped Index, which measures U.S. equities in technology. Inception in 2000 provides a long track record, with 139 holdings and approximately $24 billion in AUM.

Top holdings include NVIDIA Corp. (NVDA, ~16%), Apple Inc. (AAPL, ~13.5%), Alphabet Inc. Class A (GOOGL, ~7.5%), Alphabet Inc. Class C (GOOG, ~6%), and Microsoft Corp. (MSFT, ~4%). Primarily allocated to information technology (~90%), with minor communication services and industrials exposure. Expense ratio stands at 0.38%, supported by high liquidity (30-day average volume over 1 million shares, bid-ask spread 0.02%). The capping mechanism limits single-stock (22.5%) and issuer (45%) concentrations, promoting relative diversification within U.S. tech.

Industry and Thematic Backdrop

The technology sector, powering AI thematic investing, faces tailwinds from surging data center demand, semiconductor innovation, and cloud expansion. Capital flows into AI infrastructure—driven by hyperscaler capex—have accelerated amid generative AI adoption. Macro drivers like moderating interest rates support growth stocks, while geopolitical tensions highlight supply chain resilience in semis. Regulatory scrutiny on AI ethics and antitrust in big tech adds risks, alongside sector vulnerabilities to earnings misses and valuation stretches. Recent market cycles underscore AI's shift from hype to deployment, with international semiconductor leaders complementing U.S. dominance.

Performance and Positioning Comparison

In recent months, both ETFs have participated in tech rallies fueled by AI enthusiasm and strong earnings from semiconductor leaders. AIQ's YTD gain of approximately 22.5% edges IYW's 19.6%, reflecting global AI picks like SK Hynix amid memory chip demand. Over broader cycles, IYW has shown relative strength during U.S. mega-cap rotations, amplified by heavy NVDA weighting, while AIQ offers resilience via international diversification during sector shifts.

Volatility profiles are comparable, with betas around 1.3-1.4 versus broader markets, tied to interest rate sensitivity and earnings cycles. IYW's concentration heightens swings from U.S.-centric events like Fed policy, whereas AIQ's thematic purity aligns with broadening AI adoption beyond hyperscalers. Relative positioning favors IYW in domestic momentum phases but AIQ amid global AI infrastructure buildout.

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Tickeron AI Verdict

Tickeron’s AI currently favors IYW due to its superior cost efficiency, larger scale, established U.S. tech momentum, and lower expense drag in prolonged bull cycles. While AIQ's global AI thematics offer diversification and upside from international semis, IYW's broader positioning and liquidity provide a probabilistic edge in prevailing sector dynamics, assuming continued mega-cap leadership.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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