Generated October 4, 2026.
Overview
AIHY and AIQ are both technology-focused ETFs that seek exposure to artificial intelligence and related opportunities, but they target fundamentally different slices of the AI investment landscape. AIHY focuses narrowly on the compute infrastructure supporting AI — data centers, semiconductors, cloud platforms, and AI software companies — with a revenue-based screen requiring 50% of earnings tied to AI. AIQ takes a broader approach to AI and technology stocks globally without such strict revenue thresholds, casting a wider net across the sector.
How they differ
The most significant difference is scope: AIHY is a specialized infrastructure play, while AIQ is a general AI and technology equity fund. AIHY requires holdings to derive at least half their revenue from AI activity, creating a concentrated bet on the companies directly powering the AI buildout. AIQ imposes no such revenue filter, allowing it to hold a wider range of technology and AI-adjacent businesses.
The funds diverge sharply in size and maturity. AIQ has $10.5B in assets under management versus $17.0M for AIHY, reflecting years of institutional adoption — AIQ launched on 05/11/2018 — while AIHY is a newly launched fund arriving in 07/20/2026. AIQ reports a 1.68 beta, indicating sensitivity to market moves that differs from funds tracking broader indexes. AIQ reports a 0.00% distribution rate, while AIHY does not report a distribution rate.
Who each is best for
AIHY: Fits investors seeking narrow, thematic exposure to the physical and software backbone powering AI deployment — compute, semiconductors, and data-center companies — and who are willing to accept the higher concentration and liquidity constraints of a brand-new, smaller fund.
AIQ: Designed for investors seeking broad exposure to AI and technology stocks with the liquidity and cost efficiency of an established, multi-billion-dollar fund, and who value a longer track record through prior market cycles.
Key risks to know
- Concentration in AI infrastructure: AIHY's mandate to hold only companies with 50%+ AI-linked revenue creates a narrower portfolio exposed to cyclical demand for compute and semiconductors. A slowdown in AI adoption or capex spending by cloud providers could pressure the entire holdings list at once. Newly launched thematic funds occasionally close or consolidate if they fail to attract assets.
- Technology sector concentration in both: Both funds concentrate in technology and AI, so their holdings likely overlap significantly. A rotation away from growth and technology stocks would pressure both, limiting diversification benefit if held together.
- Valuation risk for early-stage AI themes: AI infrastructure and AI-related technology stocks have traded at elevated valuations based on growth expectations. Both funds are exposed to the risk that valuation multiples compress if adoption timelines slip or competitive intensity increases.
- Market sensitivity: AIQ reports a 1.68 beta, indicating it moves with greater amplitude than broad market benchmarks. Investors uncomfortable with pronounced swings during technology downturns should account for this characteristic.
Bottom line
If you want narrowly targeted exposure to the companies physically building AI infrastructure and can tolerate the liquidity and tracking costs of a micro-cap fund, AIHY's infrastructure focus and lower expense ratio fit that profile. Both carry significant sector concentration and sensitivity to technology valuations; past performance does not guarantee future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
