Investors are concerned about a possible AI crash in 2026, with 57% citing it as the biggest market risk. Vanguard research suggests bonds may be a better investment than stocks soon. Diversifying into value stocks, small-cap stocks, and high-quality bond ETFs can help reduce the risk of an AI crash.

Global investor enthusiasm for AI stocks has led to significant gains in the stock market. However, concerns are rising about a potential AI crash. The Global X Artificial Intelligence & Technology ETF outperformed the S&P 500 but has seen a decline. Diversifying investments with value stock ETFs like Vanguard Value ETF could mitigate risk.

To diversify against an AI crash, consider small-cap stocks or bond ETFs. Small-cap companies are less exposed to AI and can offer potential growth. The iShares Russell 2000 Growth ETF is a good option. Additionally, high-quality U.S. bonds are projected to deliver stable returns in the next decade, making bond ETFs like Vanguard Total Bond Market ETF a smart choice.

Investing in value stock ETFs and small-cap stock ETFs can help mitigate risks associated with an AI crash. Vanguard Value ETF and iShares Russell 2000 Growth ETF are recommended options. Additionally, high-quality U.S. bonds are projected to provide stable returns, making bond ETFs like Vanguard Total Bond Market ETF a safe investment choice.

Read more at Yahoo Finance: Afraid of an AI Crash? These 3 Safer Plays Could Protect Your Portfolio.