Has AI Made S&P 500 Index Funds Too Dangerous to Touch?
The S&P 500 has become overexposed to the AI industry.
Overview
Investing in the S&P 500 index is one of the more popular investment strategies.
Average investors often turn to S&P 500 ETFs such as the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) or the Vanguard S&P 500 ETF (NYSEMKT: VOO), and for good reason. It provides a safe level of exposure to 500 companies, allowing investors to profit while staying diversified without needing to research individual stocks.
Details
However, the artificial intelligence (AI) boom has arguably compromised that diversity. Here's what happened and what investors might need to do about it.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.