The Shift in AI Investing
For investors heavily reliant on the Invesco QQQ Trust (QQQ) to capture the artificial intelligence boom, the past year has provided a significant reality check. Market data reveals that the Global X Artificial Intelligence & Technology ETF (AIQ) has outperformed QQQ by 17 percentage points over the last twelve months, returning 52% compared to QQQ’s 35%.
The divergence highlights a structural limitation in US-centric tech indices. While QQQ remains a dominant vehicle for exposure to US mega-cap technology, its performance is heavily concentrated, with 52% of its assets tied to just ten stocks. In contrast, AIQ has capitalized on its ability to access international semiconductor and memory manufacturers that are typically excluded from Nasdaq-100 trackers.
The Advantage of Global Exposure
The primary driver of AIQ’s outperformance has been its strategic holdings in non-US firms that form the backbone of the AI infrastructure. Companies such as South Korea’s SK Hynix and Samsung, alongside Taiwan Semiconductor (TSM), have delivered significant returns—SK Hynix alone saw a 211% return in 2025. Because these companies often lack US-listed ADRs or are difficult to access via standard brokerage accounts, they are absent from QQQ.
Analysts note that while QQQ functions as a concentrated bet on US tech giants, it remains vulnerable to the volatility of single stocks like NVIDIA. During periods where US-listed chipmakers faltered, international supply chain partners often showed resilience, providing a diversification buffer that QQQ lacks.
Risks and Considerations
While AIQ offers broader exposure, it comes with distinct trade-offs. The fund carries an expense ratio of 0.68%, higher than the passive QQQ. Furthermore, international exposure introduces currency risks and geopolitical sensitivities, particularly regarding holdings in Taiwan and China. Despite these risks, the fund’s ability to capture value across the entire ‘picks-and-shovels’ AI ecosystem has proven to be a compelling alternative for investors looking to move beyond the traditional US-only tech basket.