Worldwide assets in artificial intelligence and big data funds have risen more than seven times in the last five years and $ 38.1 billion by the end of 2025’s first quarter, with AI ETFs that dominate the American market, according to a recent direct report from Morningstar.
The investment theme of artificial intelligence experienced record current in the first quarter in the first quarter, driven by Chinese investors who respond to the breakthrough success of the domestic AI Startup Deepseek. According to the report, the efficient AI model of the Chinese company has demonstrated how progress could improve performance and reduce the dependence of powerful computer hardware according to the report.
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The increase reflects the growing investor’s interest in AI technologies after the launch of Chatgpt 3.5 of the Late 2022, which marked a crucial moment in AI adoption and fueled institutional and enthusiasm for the sector for the sector, Morningstar reports. However, the investment landscape is characterized by high volatility, with AI funds that experience both dramatic growth and sharp falls as the market sentiment shifts.
The growth shows how ETFs have become the preferred vehicle for AI investments in the US, in contrast with Europe, where actively managed investment funds dominate, according to the Morningstar report.
In contrast to Europe, where AI funds are generally actively managed investment funds, an investment in the US is overwhelmingly dominated by stock market funds, according to Morningstar Direct. The ETF structure appeals to investors because of the lower costs, greater transparency and improved trading flexibility compared to traditional actively managed vehicles.
The assets of the US and Big Data Fund became 14-time in just two years and reached a record of $ 5.5 billion by the end of May 2025. Despite this increase, the US is still good for only 15% of the global AI fund assets, according to the report.
The largest AI fund in the US is the Global X Artificial Intelligence & Technology ETF (AIQ)What benefits from the status of the first mover as inaugural AI-oriented ETF in the region. The emergence of active ETFs has also contributed to growth, with assets in actively managed thematic AI ETFs that reach $ 415 million, which represents almost 10% of the total AI fund activa domiciled by the US, according to Morningstar Direct.
The targeted style of ETFs makes them suitable for aiming granular exposures within the wider AI theme. The biggest funds illustrate this diversity of options, according to the report.
The so-called beautiful seven technological shares dominate AI ETF companies, creating structural challenges for fund managers. Nvidia Corp. (NVDA) appeared in almost nine out of 10 AI funds, while all seven companies were held by more than half of the AI portfolios, according to Morningstar Research.
