Investing in AI-focused ETF with top holdings in Meta, Nvidia, and Apple predicted to perform well.

From Nasdaq: 2024-12-17 04:52:00

The artificial intelligence (AI) industry is booming, with Nvidia’s market cap growing from $360 billion to $3.3 trillion in 2023. Picking long-term winners is challenging, so investing in an AI-focused ETF like iShares Expanded Tech Sector ETF (IGM) may be a smart move, as it holds many top AI stocks, including Meta, Nvidia, and Apple.

The iShares ETF is well-diversified with 276 stocks, but its top three positions, Meta, Nvidia, and Apple, make up 25.3% of its portfolio value. These companies are at the forefront of AI development, with Meta leading in large language model creation, Nvidia’s GPUs for data centers being top-notch, and Apple introducing AI features through Apple Intelligence software.

Investing $500 per month in the iShares ETF could potentially turn into $1 million over 30 years, with an annual return of 10.9%. AI’s value creation potential is immense, with predictions of adding $7 trillion to $15.7 trillion to the global economy by 2030. While AI stocks like Meta, Nvidia, and Apple have shown strong growth, investors should balance their portfolio with other funds and stocks.

Considerations should be made before investing in iShares Expanded Tech Sector ETF, as other stocks may offer higher returns. The Motley Fool Stock Advisor team has identified 10 stocks with considerable growth potential, outperforming iShares ETF. With past recommendations like Nvidia yielding impressive returns, Stock Advisor provides guidance on building a successful portfolio, with a track record of outperforming the S&P 500 since 2002.



Read more at Nasdaq: Nvidia, Meta Platforms, and Apple Could Help This Unstoppable ETF turn $500 Per Month Into $1 Million