Not Sure Which AI Stocks to Buy? Invest in This ETF

Artificial intelligence (AI) stocks have been all the rage this year, highlighted with Nvidia (NASDAQ:NVDA) recently hitting a $1 trillion market cap. But if you're worried about missing out on them, you may want to consider just buying an exchange-traded fund (ETF) that can give you exposure to AI stocks. Rather than determining which AI stocks to buy, you can get a dozens of them in a single investment.

One ETF that's up over 20% this year that could make for an attractive option is the iShares Robotics and Artificial Intelligence Multisector ETF (NYSE Arca:IRBO). The fund looks to gain "Exposure to companies at the forefront of robotics and artificial intelligence innovation." And with 116 holdings in the fund, there's some great diversification that investors can benefit from. The ETF's expense ratio of 0.47% is also comparable to other thematic ETFs.

In addition to Nvidia, some of the ETF's top holdings include Meta Platforms (NASDAQ:META), Advanced Micro Devices (NASDAQ:AMD), and Spotify Technology (NYSE:SPOT). What's attractive for risk-averse investors is that even though Nvidia is the top holding, it accounts for just 1.8% of the fund's total weight; there isn't much risk of an individual stock weighing down the ETF. And while this is a very tech heavy fund with information technology stocks accounting for 59% of all holdings, the ETF also has communication stocks and industrials making up 18% and 13% of its total weight, respectively.

This fund can be a great option for investors who want exposure to AI but don't want to take on a lot of risk and who may not know exactly which stocks to buy.