Worried About Which AI Stock to Buy? This Low-Cost ETF Lets You Own the Whole Trade.
One fund hands you the biggest names in the artificial intelligence build-out for next to nothing in fees. But that convenience comes with a catch.
Worried About Which AI Stock to Buy? This Low-Cost ETF Lets You Own the Whole Trade.
Overview
Picking the right artificial intelligence (AI) stock is hard, and the past week made that especially clear. Chip stocks tumbled in early June, dragging the Nasdaq Composite down about 4% on June 5 for its worst session since the tariff turmoil of early 2025. Names that had carried the market higher for months -- Advanced Micro Devices, Intel, and others tied to AI hardware -- gave back chunks of enormous gains in a matter of days. And some AI stocks fell far more sharply than others.
For an investor trying to decide which single AI name to own, that kind of move is unsettling. Buy the wrong one at the wrong moment, and a year of patience can unwind in an afternoon.
Details
There is another way to play the theme, though, and it doesn't require getting any one stock right. The Vanguard Information Technology ETF (NYSEMKT: VGT) gives investors a single purchase that gives them a stake in more than 300 technology companies, at a cost hard to beat. For investors nervous about concentration but unwilling to sit out the AI build-out entirely, it deserves a close look -- with eyes open to what it actually holds.
Source
Originally published at www.fool.com.
