It might be surprising, but the phrase “artificial intelligence” has been around for over half a century — since 1955, in fact. It was intended to describe a new computer science sub-discipline.

But what exactly is artificial intelligence? In simple terms, artificial intelligence, or AI, means “simulated intelligence in machines.” In other words, machines with AI are capable of thinking like people and mimicking their actions, sort of like a robot. The ideal characteristic of AI is the ability to rationalize.

Of course, that is a very broad definition of AI technology. There are actually at least 10 different types of AI, which seems to prove that this market isn’t going anywhere anytime soon.

Case in point: research conducted by Markets and Markets suggests the AI industry will be worth over US$190.16 billion by 2025, increasing at a compound annual growth rate of 36.62 percent between 2018 and 2025. With that much money going into the sector, there is certainly no shortage of ways for investors to add AI investments to their portfolios.

For the investor who is new to this segment of the technology sector and would prefer to gain AI exposure in the overall market rather than specific AI stocks, an exchange traded fund (ETF) is a popular way to do so. Here the Investing News Network looks at five AI-focused ETFs listed on ETFdb.com. The list was current as of August 6, 2020.

According to ETFdb.com, these artificial intelligence ETFs are required to meet one of three criteria:

• involvement in developing new products, services or technological improvements in scientific research related to AI;
• funds that have 25-percent portfolio exposure to companies that spend money on AI research and development expenses;
• use of AI methods to choose individual securities to be included in the fund.

1. Global X Robotics & Artificial Intelligence Thematic (NASDAQ:BOTZ)

Assets under management (AUM): US$1.639 billion

First on our artificial intelligence ETFs list is the Global X Robotics & Artificial Intelligence Thematic ETF, which launched in September 2016. It offers exposure to firms involved in the global automation and robotics industries.

According to ETF.com, the Global X Robotics ETF has holdings in markets such as industrials, technology, healthcare and energy. Eligible companies are listed in developed countries and must earn a significant portion of their revenue from, or have a stated business purpose in, the field of robotics or artificial intelligence

The ETF currently tracks 32 holdings, including Intuitive Surgical (NASDAQ:ISRG) and NVIDIA (NASDAQ:NVDA).

2. Robo Global Robotics and Automation Index (NASDAQ:ROBO)

AUM: US$1.275 billion

The Robo Global Robotics and Automation Index, launched in October 2013, was the first robotics and automation ETF to market, and as its name suggests, the fund follows companies involved in those sectors.

It currently tracks 87 companies, and its top two holdings are SMC Corp (TYO:6273) and Vocera Communications (NYSE:VCRA).

3. ARK Industrial Innovation ETF (ARCA:ARKQ)

AUM: US$474.51 million

The ARK Industrial Innovation ETF came was created in September 2014, and primarily focuses on advancements in autonomous vehicles, robotics, 3D printing and energy storage technology that enhances productivity and reduces costs.

The fund describes itself as including companies that may “benefit from the development of new products or services, technological improvements and advancements in scientific research related to, among other things, energy automation and manufacturing materials, and transportation.”

ARK tracks 38 holdings, with its two biggest holdings being Tesla (NASDAQ:TSLA) and 2U Inc. (NASDAQ:TWOU).

4. iShares Robotics and Artificial Intelligence (ARCA:IRBO)

AUM: US$162.89 million

The next AI ETF on our list is the iShares Robotics and Artificial Intelligence ETF, which is relatively new — the fund came into being in June 2018. It tracks an index composed of 102 developed and emerging market companies that could benefit from long-term growth in robotics technologies and artificial intelligence. IRBO has the lowest expense ratio of the AI funds on this list at .47 percent.

Some of the IRBO ETF’s top holdings include Douyu International Holdings (NASDAQ:DOYU), Advanced Micro Devices (NASDAQ:AMD), HUYA Inc. (NYSE:HUYA) and Apple (NASDAQ:AAPL).

5. First Trust NASDAQ Artificial Intelligence and Robotics ETF (NASDAQ:ROBT)

AUM: US$116.53 million

Last but not least on our artificial intelligence ETFs list is the First Trust NASDAQ Artificial Intelligence and Robotics ETF, launched in February 2018. ROBT tracks an index of all-cap, global companies involved in artificial intelligence and/or robotics. These companies are involved in advance machinery, semiconductors or databases used for machine learning; companies offering products, software or systems; and companies that provide value to the AI/Robotics industry.

ROBT’s portfolio is comprised of 102 holdings including Corelogic Inc. (NYSE:CLGX) and Nuance Communications Inc. (NASDAQ:NUAN).

Which of these artificial intelligence ETFs would you invest in and why? Tell us in the comments.

This is an updated version of an article originally published by the Investing News Network in 2017.

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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.