Canadian ETFs Riding the AI Rally
Technology stocks are once again leading global markets, with record relative strength, booming AI revenues, and upcoming AI IPOs reinforcing investor enthusiasm for the sector.
Despite there being no real resolution to the Iran Conflict and the transit blockage at the Strait of Hormuz, there has been a ‘return to familiarity’, with the strong performance of the information technology sector and its incumbents capturing the market's attention. Against the backdrop of geopolitical uncertainty, the technology sector, particularly those participating in the AI ecosystem, continues to be validated by rapid revenue growth and strong profit margins. In looking at the S&P 500 technology sector’s relative strength versus the broad market, it is currently at its highest level in history, surpassing the March 2000 peak.
AI is entering the public markets
The strong performance of firms in the AI industry, particularly semiconductor firms, has been well documented. However, the AI landscape is approaching an inflection point, given Anthropic's impending initial public offering. As announced by the firm at the start of the month, Anthropic has confidentially filed a draft Form S-1 with the U.S. Securities and Exchange Commission (SEC). This filing allows the company to go public once the SEC completes its review, subject to market conditions and other factors. There is also a growing belief that OpenAI will go public this year. Further fueling the market’s excitement around these notable firms’ public offerings is President Trump's comment that his administration will look into taking stakes in these companies. While one could interpret President Trump’s statement as political posturing, it is important to note that earlier this year, the Trump administration took a stake in critical-mineral firms; as such, his statement carries some weight.
Gaining Tech Sector Exposure via ETFs
For Canadian investors interested in gaining exposure to the Tech sector, or more specifically, to the AI industry, there are several ETFs that can provide turnkey exposure, namely:
The Evolve NASDAQ Technology Index Fund (Tickers: QQQT/QQQT.U) seeks to replicate the performance of the Nasdaq-100 Technology Sector Adjusted Market-Cap Weighted™ Index, a specialized, concentrated variant of the Nasdaq-100 that tracks only its "pure" technology components.
The First Trust AlphaDEX U.S. Technology Sector Index ETF (Tickers: FHQ/FHQ.F) seeks to replicate the performance of the StrataQuant Technology Index, an enhanced, quantitative tech benchmark that selects and weights stocks from the Russell 1000 Index using the AlphaDEX methodology. It evaluates companies on value and growth factors to identify those expected to outperform traditional, market-cap-weighted indices.
The BMO SPDR Technology Select Sector Index ETF (Tickers: ZXLK/ZXLK.F) seeks to replicate the performance of the Technology Select Sector Index that provides exposure to equity securities of large-capitalization issuers in the U.S. information technology sector. Generally, the ETF will invest substantially all of its assets, directly or indirectly, in the State Street® Technology Select Sector SPDR® ETF (Ticker: XLK)
The iShares Semiconductor Index ETF (Ticker: XCHP) seeks to replicate the performance of the NYSE Semiconductor Index, which is designed to measure the performance of U.S.-listed equity securities that are in the semiconductor industry.
The Global X Artificial Intelligence Semiconductor Index ETF (Ticker: CHPS) seeks to replicate the performance of the PHLX US AI Semiconductor Index, which is designed to provide exposure to public companies listed on select US exchanges that are engaged in the AI semiconductor value chain.
This article was written on June 7th, 2026. Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
