It might be a good idea for every long-term investor to at least consider getting AI exposure in their portfolios.
Get your AI right here
The Invesco NASDAQ 100 ETF (QQQM) is recommended for comprehensive AI exposure, tracking the Nasdaq-100 index of the 100 largest non-financial stocks. The ETF has a heavy allocation to the technology sector, accounting for almost 62% of its assets. Top holdings include Nvidia, which has seen remarkable growth (1,250% in five years) due to the AI boom, and other tech giants like Microsoft, Amazon, and Alphabet, which are crucial for cloud computing supporting AI. Executives from Meta Platforms and Tesla are also noted for their bullish stance on AI, while Apple maintains a formidable competitive position, all contributing to the AI opportunity set for investors.
Looking at the past and the future
The NASDAQ 100 ETF has demonstrated strong historical performance, generating a 94% total return over the past five years, effectively nearly doubling a $2,000 investment to $3,900, which translates to a 14.3% compound annual gain. The ETF is also notable for its low expense ratio of just 0.15%. Despite current market sentiment and fears of an 'AI bubble,' with the ETF trading 3% below its peak, investors are advised to adopt a long-term perspective (at least a decade). The article suggests that patience and discipline are key for potential rewards, similar to historical trends, acknowledging that past performance does not guarantee future results.
