1 Market-Beating Artificial Intelligence (AI) ETF That Could Turn $250,000 Into $1 Million – Yahoo Finance

iShares expanded its Tech Sector ETF (NYSEMKT: IGM) Since its establishment in 2001, it has provided a combined annual return of 10.3%, making it comfortable S&P 500 (snpindex: ^gspc), Over the same period (at the time of this writing), the average annual gain was generated 7.8%.

This is an Exchange-Traded Fund (ETF) focused on the broader technology industry, and has navigated the transformation boom driven by the Internet, enterprise software, cloud computing and more. Currently, the majority of the companies that make up top holdings are focused on the development of artificial intelligence (AI).

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Here’s how Islands ETFs can be converted to $1 million over the long term:

iShares expanded its technology division ETF It holds 283 different stocks, including most of the major players in AI races. The top 5 possessions are Microsoft, apple, alphabet, nvidiaand Meta Platformwhich represents a total of 41.7% of the value of the portfolio, so the fund is very top-heavy.

However, the fund also holds stocks on a long list of companies that are successfully deploying AI in legacy businesses to create new growth opportunities. Some of them are:

Data Source: iShares. Portfolio weightings were accurate as of April 17, 2025 and are subject to change.

Netflix operates the world’s largest streaming service for movies and TV shows. Use AI in the recommendation engine to continue working for longer to show subscribers the content they are most likely to enjoy. The company is another quarter of its record revenue for the first three months of 2025.

Oracle was founded in 1977 and was an early success with database management software. The company evolved over time to capitalize on the internet boom of the early 2000s and the cloud revolution of the 2010s. Currently, it operates some of the world’s best data centers for AI development, and has a customer list that includes industry leaders such as Openai, Meta platform and Elon Musk’s Xai.

Oracle recently ordered the MI355X, the latest AI data center chip with 30,000 advanced micro devices. However, AMD’s AI opportunities transcend data centers. This is because it has become part of the most powerful AI chips in personal computers that could be the industry’s next major growth opportunity.

So It is the Palo Alto Network and a cloud strike. Two of the world’s largest cybersecurity vendors. They weave AI into their flagship products, automate everything from threat detection to incident response. This moves into the digital realm as modern organizations face more threats.

As highlighted above, Ishares Expanded Tech Sector ETFs have generated a combined annual revenue of 10.3% since 2001, but the spread of technologies such as enterprise software, cloud computing, and now AI has accelerated annual revenue to 18.7% over the past decade.

The table below shows how long it takes for an ETF to change its $250,000 starting balance to $1 million based on three different scenarios.

Tables and calculations by the author.

Simply put, investors who park $250,000 in an iShares ETF can win $1 million within 15 years. However, ETFS for certain industries like technology can be extremely unstable, so it’s not necessarily a smooth voyage.

In fact, Ishares ETF fell 17% in 2025 amid a global trade tension that is far worse than the 10% decline in the S&P 500.

Since Ishares ETF was founded in 2001, AI could be the biggest tailwind for the tech industry. Goldman Sachs With an estimated $7 trillion added to the global economy over the next decade, Kathy Wood’s Ark Investment Management believes that by 2030, it will be able to increase labor productivity with an impressive $200 trillion. Many of that value is created because patient investors have a legitimate opportunity to earn a robust return in the long term.

Before you buy stocks with ISHARES Trust – Expand your ISHARES Expanded Tech Sector ETF. Consider this.

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Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. Anthony di Pigio There is no position in any of the stocks mentioned. Motley Fools introduces and recommends Adobe, Advanced Micro Devices, Alphabet, Apple, Atlassian, Crowdstrike, Datadog, Docusign, Goldman Sachs Group, Meta Platforms, Microsoft, Netflix, Nvidia, Oracle, and Salesforce. Motley Fool recommends Palo Alto Networks and recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone at Microsoft for January 2026 short term. To Motley’s fool Disclosure Policy.

AI ETFs that will boost markets that could turn $250,000 into $1 million Originally published by The Motley Fool