AIHY vs AIQ: Which Is the Better Pick in 2026?

Overview

AIHY and AIQ are both technology-focused ETFs centered on artificial intelligence, but they target different segments of the AI ecosystem. AIHY, launched in July 2026, specifically screens for companies deriving at least 50% of revenues, assets, or spending from AI and emphasizes the compute infrastructure and backbone—data centers, semiconductors, cloud platforms, and AI software. AIQ, established in May 2018, takes a broader technology approach to AI exposure without a stated revenue-threshold filter, covering AI-adjacent companies across the sector.

How they differ

The core distinction is focus: AIHY narrows to companies whose business model is fundamentally built on AI (infrastructure, chips, cloud), while AIQ casts a wider net across general technology and AI themes without requiring such deep AI revenue dependence. AIHY carries a lower expense ratio at 0.37% compared to AIQ's 0.68%, but AIQ's $10.1B in assets under management dwarfs AIHY's $5.26M, reflecting AIQ's longer operational history since 05/11/2018. AIQ publishes a 1.68 of 1.68, revealing meaningful sensitivity to broader market swings.

Who each is best for

AIHY: Fits growth-oriented investors seeking concentrated exposure to the physical and software infrastructure layer of AI—companies whose survival and profitability are explicitly tied to AI demand—and who are comfortable with a newer, smaller fund that applies a stricter definitional screen.

AIQ: Fits investors who prefer a more established, liquid vehicle with broader AI and technology exposure, higher trading volume, and a longer track record; appropriate for those treating AI as one theme among multiple technology holdings rather than a narrowly defined infrastructure thesis.

Key risks to know

• Concentration in compute cycles: Both funds inherit significant exposure to semiconductor and data-center cyclicality. Pullbacks in AI capital spending or a moderation in hyperscaler infrastructure investment could pressure valuations across both portfolios.

• AIQ's market sensitivity: A 1.68 beta means AIQ amplifies market swings; during equity downturns, it is likely to experience steeper losses than the S&P 500.

• Definitional arbitrage risk in AIHY: The 50%-revenue-from-AI screen may exclude cyclical infrastructure plays that still benefit from AI buildout, or inadvertently capture companies whose AI revenue is inflated or unsustainable, creating a false sense of "purity."

• Overlapping holdings and sector concentration: Given that both funds target AI infrastructure, their portfolios likely overlap significantly (typically semiconductors, cloud, and data-center operators). Holding both may create unintended sector concentration rather than diversification.

Bottom line

If you want tightly filtered exposure to companies whose core business is AI infrastructure and don't mind a smaller, newer fund, AIHY's lower cost and definitional focus may appeal. If you prefer a larger, more liquid fund with a longer operating history and are comfortable with a broader definition of AI exposure across the technology sector, AIQ offers established market presence and a published beta for volatility assessment. Neither guarantees outperformance; past returns do not predict future results.