The worlds of AI and ETFs are converging. Pacer ETFs wants a part of it

The worlds of AI and ETFs are converging. Pacer ETFs wants a part of it
Fund provider Pacer ETFs is one of the latest companies to ride the fast-growing AI wave.
MAY 14, 2026

The words “AI” and “ETF” are increasingly appearing in the same sentence as fund managers look to harness the explosion around artificial intelligence.

Fund provider Pacer ETFs is one of the latest companies to ride this wave with the launch of the Pacer S&P 500 3AI Top 100 ETF (Ticker: PSAI) and the Pacer S&P World 3AI Top 300 ETF (Ticker: WDAI). Both funds track the total return performance of their respective S&P 3AI indices, which use AI and machine learning to identify companies with high forecasted excess return potential.

“At a time when investors are increasingly looking for new sources of return beyond traditional beta and static factor strategies, these funds leverage a differentiated approach to equity investing,” said Sean O’Hara, president of Pacer ETF Distributors, in a statement.

Other companies are also tapping into the broader theme of AI and ETFs, reflecting the technology’s relentless rise in corporate America and society as a whole. Wedbush Fund Advisers recently launched the Dan IVES Wedbush AI Power & Infrastructure ETF (Ticker: IVEP), which it is touting as a way to give advisors exposure to the companies powering the AI boom. The fund is built around Wedbush’s “IVES Power 30,” research report, which focuses on companies poised to benefit from rising electricity demand tied to AI. These include power generation, fuel supply, grid infrastructure and data centers, equipment and power management and materials and enabling technologies.

The IVEP ETF has risen more than 9% since its launch in April. Last year, Wedbush introduced the Dan IVES Wedbush AI Revolution ETF (Ticker: IVES), which has risen more than 46% since its June 2025 launch.

AI is certainly booming. Mordor Intelligence, for example, estimates that the AI market will grow from $306.04 trillion in 2025 to hit $434.42 trillion this year. But the coming years are set to see growth at an even more rapid pace, with the market estimated to be worth roughly $2.5 quadrillion in 2031.

Other AI-focused ETFs include the Global X Artificial Intelligence & Technology ETF (Ticker: AIQ), which invests in companies that stand to benefit from the development and use of artificial intelligence, and the iShares Future AI & Tech ETF (Ticker: ARTY). The fund offers exposure to AI innovators, according to iShares, and targets areas such as generative AI, AI data and infrastructure, AI software, and AI services.

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