In Q3 2025, the Nasdaq 100 outperformed the S&P 500, with QQQ NAV up 8.94% compared to the S&P 500’s 8.12%. However, past performance does not guarantee future results, especially if the tech sector sees a sudden downturn.

Investors are debating between the tech-heavy Nasdaq 100 through QQQ or the broader Vanguard Total Stock Market Index ETF (VTI) as a better investment choice.

The QQQ currently has a higher valuation and multiple due to the AI hype priced into the tech-heavy index, compared to the broader market exposure of VTI.

Non-tech companies are also incorporating AI into their strategies, potentially offering investors a different avenue for AI exposure with less of a premium than tech stocks.

With a higher P/E ratio, the QQQ may see more downside if investors reassess the premium they are willing to pay for tech and AI exposure.

Investors may want to consider a mix of QQQ and VTI in their portfolios to balance exposure to tech with broader market diversification.

The Vanguard Total Stock Market Index ETF may be a safer long-term bet for investors, as it offers exposure to a wide range of stocks, potentially shielding investors from a possible burst in the AI bubble.

As the AI boom may face a bubble bursting in the next few years, investors should carefully consider their exposure to tech stocks, with VTI serving as a more stable option.

Investors should not expect Nasdaq 100 ETFs to consistently outperform the S&P 500, and a combination of VTI and QQQ may be a suitable strategy for investors seeking a balance between broad market exposure and tech sector growth.

Read more at Yahoo Finance: Which ETF Should Be the Bedrock of Your Portfolio?