The synthetic intelligence (AI) growth is a wealth-building phenomenon that has created new millionaires since 2022. It’s solely rational for Canadian traders to desire a piece of this transformative development immediately. Whereas the worry of lacking out (FOMO) is usually a harmful funding driver, the occasion is way from over, with billions nonetheless pouring into AI infrastructure and innovation accelerating at a breakneck tempo.

Whereas the most important AI firms are domiciled on international exchanges, a easy possibility exists for Canadian traders questioning tips on how to take part with out choosing particular person international shares: Canadian-dollar-denominated AI-focused exchange-traded funds (ETFs). These funds provide a single-ticket method to gaining diversified publicity to the businesses powering the AI revolution. Let’s discover the highest Canadian AI ETFs that might assist your portfolio catch the following wave of development.

TD International Know-how Leaders Index ETF: Essentially the most established titan

Consider the TD International Know-how Leaders Index ETF (TSX:TEC) as a seasoned veteran within the tech house. Whereas not solely an AI fund, its large $3.5 billion portfolio is full of the very firms main the cost. With 234 holdings, it provides broad diversification throughout world tech giants.

The TEC ETF’s enchantment is simple: you get entry to powerhouse AI gamers like Nvidia, Microsoft, and Meta Platforms beneath one roof. This ETF is a compelling selection for traders searching for a confirmed, low-cost automobile with a annual administration expense ratio (MER) of simply 0.39%. A $10,000 funding three years in the past, simply earlier than ChatGPT’s explosion, would have greater than doubled to over $21,000.

CI International Synthetic Intelligence Fund ETF

Traders searching for a extra concentrated AI guess might try the CI International Synthetic Intelligence Fund ETF (TSX:CIAI), Canada’s largest devoted AI fairness ETF with practically $1 billion in property. This fund is actively managed, which means a workforce of execs actively researches and selects firms they consider will profit most from AI developments. This hands-on method comes with a considerably larger however manageable administration charge of 0.55%, following the expiry of a charge waiver midyear this 12 months.

With a heavy weighting in U.S. tech shares of 84% and Nvidia inventory as its prime holding at 12.5%, the CIAI ETF is designed for traders who desire a centered, professionally curated basket of AI leaders and are comfy with larger capital danger for probably better long-term capital appreciation.

International X Synthetic Intelligence Semiconductor Index ETF: The engine room play

If AI is the mind, semiconductors are the center, and the International X Synthetic Intelligence Semiconductor Index ETF (TSX:CHPS) provides direct entry to this vital area of interest. As Canada’s first semiconductor ETF, CHPS targets firms that design and manufacture the chips powering all the things from knowledge centres to AI-smart gadgets. It is a tactical, high-conviction funding. The fund tracks an index of 18 chip giants together with Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing. The ETF is extremely concentrated with prime 10 holdings comprising over 90% of the portfolio.

With an MER of 0.66%, it’s a bit pricier than some friends, however you’re paying for specialised publicity to the important {hardware} behind AI. This TSX AI ETF provides a compelling, focused alternative for traders who consider the actual gold rush is in promoting the picks and shovels.

2 small Canadian AI ETF challengers

Two tiny AI ETFs are competing for investor {dollars} in 2025, and certainly one of them makes use of AI to reinforce inventory choosing.

Launched in early 2024, the Invesco Morningstar International Subsequent Gen AI Index ETF (TSX:INAI) takes a disciplined, rules-based method to determine firms anticipated to reap vital financial advantages from AI. It’s enticing on account of its low MER of 0.38% — the bottom among the many prime 5 Canadian AI ETFs listed within the desk above. It has 48 holdings and is considerably diversified with tech shares contributing a 70.6% portfolio weight whereas telecoms (16.4%) and shopper discretionary shares (10%) add sector variety.

What if an AI helps handle your AI investments? That’s the intriguing premise behind the Evolve Synthetic Intelligence Fund (TSX:ARTI). This tiny ETF makes use of a synthetic intelligence platform to reinforce its inventory choice and portfolio administration. It’s a meta-play for traders comfy with the concept machine studying can determine alternatives people may miss. It has 60 holdings, 99% of that are U.S. shares.