Exchange-traded funds (ETFs) are a fantastic way to own a slice of dozens, or even hundreds, of companies simultaneously. Essentially, it can be like owning the entire racetrack rather than betting on a single horse.  

Here are two different ETFs that I reckon are worth weighing up today for a Stocks and Shares ISA.

The AI revolution

Let’s start with the iShares AI Innovation Active ETF (LSE:IART). This fund holds 41 stocks that are central to, or benefitting from, artificial intelligence (AI) technology.

Now, AI’s a particularly hot topic right now and causing a lot of headlines. Some think we’re in an ‘AI bubble’ that might be about to pop, which, if true, would obviously be negative for this ETF’s performance.

However, what’s certain is that the big four cloud giants (Amazon, Google, Meta, and Microsoft) plan to spend upwards of $650bn in 2026, largely on AI infrastructure.

Amazon’s CEO recently said: “We’re going to invest aggressively here, and we’re going to invest to be the leader in this space [AI/cloud computing]”.

These colossal spending commitments are set to benefit many of the companies in this ETF. These include chipmakers Nvidia, Broadcom, Advanced Micro Devices (AMD), and Taiwan Semiconductor (TSMC), as well as chip equipment firms like Lam Research and Advantest.

Basically, these are the picks and shovels of the AI revolution. In other words, the companies supplying the physical equipment and infrastructure required to run AI.

Elsewhere in the ETF, there are high-quality tech names such as Meta, Snowflake, and Palantir. These are all investing heavily in AI or, in the case of Palantir, seeing their growth accelerate dramatically due to the AI boom.

The ETF’s fallen 7.5% since October, offering what I think is an attractive entry point to consider.

Passive income

Next, I want to highlight the iShares MSCI Target UK Real Estate ETF (LSE:UKRE). As the name suggests, this fund holds a number of UK real estate investment trusts (REITs), including Segro, LondonMetric Property, Tritax Big Box, and Primary Health Properties.

These REITs offer exposure to an incredibly wide range of property types, such as e-commerce warehouses, urban industrial locations, hotels, theme parks, data centres, and GP surgeries. They pay out at least 90% of their rental profits as dividends.

Better still, because the sector has sold off dramatically since 2022, they’re now offering chunky dividend yields. As such, this iShares Real Estate ETF is also offering an attractive 6.1% yield.

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Now, a big risk here is that the UK economy tanks at some point. In this scenario, some tenants could be forced to downsize, impacting occupancy rates and possibly even dividends.

However, what I like here is that 39% of the ETF is in inflation-linked gilts (UK government bonds). Obviously these are much more reliable income sources than REITs, thereby offering a bit more stability.

Looking ahead, the fund should do well if interest rates keep falling and investors warm back up to REITs. The Bank of England has just signalled that further rate cuts are “likely” this year.