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1 No-Brainer Artificial Intelligence (AI) ETF to Buy With $100 and Hold Forever

Artificial intelligence (AI) has created trillions of dollars in value for some of America's largest companies over the last few years, but not every player in this emerging industry has been a winner.

Lemonade stock is down 71% from its all-time high (as of Friday, Oct. 2).

SoundHound AI stock is down 75% from its all-time high.

C3.ai stock is down 93% from its all-time high.

Upstart Holdings stock is down 94% from its all-time high.

While most people agree AI is a transformative technology, picking winners and losers in this space isn't necessarily easy. Buying an exchange-traded fund (ETF) that owns an entire basket of AI stocks can eliminate the guesswork, so it's probably a smarter move for everyday investors.

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The Roundhill Generative AI and Technology ETF (NYSEMKT: CHAT) exclusively invests in companies that are developing the hardware, software, and platforms powering the AI revolution. Investors can buy a single share in the ETF for under $100, and here's why it might be a good idea for the long term.

A collection of leading AI stocks

Some ETFs hold hundreds or even thousands of individual stocks, but the Roundhill Generative AI and Technology ETF holds just 44. It has a highly concentrated portfolio because it invests solely in the AI industry, so investors shouldn't put all of their eggs in this basket alone. Instead, this fund would be a great addition to a diversified portfolio of other ETFs and individual stocks, particularly one that doesn't already have much exposure to the AI boom.

The Roundhill ETF is quite top-heavy, with its 10 largest positions alone representing 39.4% of the value of its entire portfolio. However, they are some of the world's highest-quality AI companies.

Roundhill ETF Portfolio Weighting

Data source: Roundhill Investments. Portfolio weightings are accurate as of Oct. 4, 2026, and are subject to change.

Suppliers of chips and components dominate the above list. Nvidia and AMD design some of the world's most powerful graphics processing units (GPUs) for data centers, which do most of the heavy lifting in AI workloads. SK Hynix and Micron, on the other hand, are top suppliers of high-bandwidth memory chips, which keep data flowing smoothly to GPUs in order to prevent bottlenecks that would otherwise slow down AI software applications.