.elementor-panel-state-loading{ display: none; }
total-news-1024x279-1__1_-removebg-preview.png

LANGUAGE

SELECT LANGUAGE BELOW

1 No-Brainer Artificial Intelligence (AI) ETF to Buy Right Now for Less Than $200 – Yahoo Finance

Artificial intelligence (AI) stocks have recently skyrocketed to hundreds or even thousands of dollars, making some of them seem out of reach. NVIDIA and Broadcom They announced a stock split to bring down the price of their high-flying shares. But what if I told you that you could buy exposure to a number of compelling AI players, including these market giants, for less than $200 today?

Sounds too good to be true. You can actually achieve this by investing in AI exchange-traded funds (ETFs). These funds hold a wide range of AI stocks, giving you the chance to profit from a lot of potential winners without the arduous task of picking each one individually. Some good ETFs to consider are: Round Hill Generative AI & Technology ETF (NYSEMKT:CHAT)With the stock currently trading at around $37, you could easily buy a few shares with $200 and get immediate exposure to dozens of promising AI stories.

A group of investors cheering in front of a computer in an office.

Image source: Getty Images.

How to buy ETFs

First, a quick word about ETFs: As a stock investor, these funds are easy to incorporate into your investment routine because they trade daily like stocks and can be purchased just like stocks. One thing to keep in mind is that ETFs come with fees. Expense ratioMake sure you invest in ETFs with expense ratios below 1% to ensure fees don’t eat into your returns over time.

Now, let’s talk about the Round Hill AI and Technology ETF. This ETF is actively managed, meaning a manager selects the stocks for the fund, but it has an expense ratio of just 0.75%, so it fits our investment criteria. The fund is relatively new, having launched about a year ago, but has risen 45% since then, significantly outperforming the S&P 500.

This fund is Generative AI Or they can use AI systems to create new data. These players might develop platforms for AI training, infrastructure for workflows, or be involved in enterprise or consumer software.

The fund’s top holdings at the moment are probably no surprise. They include Nvidia, Microsoftand alphabetIt has a weighting of over 5% to 8%. But the Round Hill fund goes beyond that, including the iPhone giant and many other companies in the sector. apple Towards a Software-as-a-Service Company Palantir Technologies.

The Benefits of AI ETFs

Of course, the fund’s double-digit gains may seem small compared to the performance of certain individual companies, like the skyrocketing Nvidia. But here’s the benefit of investing in this ETF: Over time, you may be able to benefit from not just one AI winner, but many. And if AI market growth projections turn out to be correct (analysts expect the AI ​​market to exceed $1 trillion by the end of the century), many of the companies could stand to gain big.

Investing in an AI ETF also reduces risk because instead of relying solely on the success of a few companies, if a particular stock disappoints, the strong performance of others can make up for it. Therefore, investing in this type of fund is a safer way to bet on this high-growth sector than investing in one or two individual stocks.

This means that while we’re in the early stages of the AI ​​growth story, investing in a variety of AI companies that have the potential to skyrocket revenues in both the short and long term is a great idea. And because investing in the Round Hill ETFs takes the heavy lifting out of stock picking, it’s an easy investment to get in now and hold as the AI ​​growth story unfolds.

Should you invest $1,000 in Tidal Trust II – Roundhill Generative Ai & Technology ETF right now?

Before buying shares of Tidal Trust II – Roundhill Generative Ai & Technology ETF, consider the following:

of Motley Fool Stock Advisor The analyst team Top 10 Stocks These are the stocks investors should buy now… and Tidal Trust II – Roundhill Generative AI & Technology ETF wasn’t among them. The 10 stocks selected are poised to generate big gains over the next few years.

Things to consider NVIDIA This list was created on April 15, 2005…If you invested $1,000 at the time of recommendation, That comes to $830,777.!*

Stock Advisor With portfolio construction guidance, regular updates from our analysts, and two new stock picks every month, we provide investors with an easy-to-follow blueprint for success. Stock Advisor The service is More than 4 times First S&P 500 recovery since 2002*.

View 10 stocks »

*Stock Advisor returns as of June 10, 2024

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adria Cimino The Motley Fool has no position in any of the stocks mentioned above. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, NVIDIA, and Palantir Technologies. The Motley Fool recommends Broadcom and recommends long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool recommends: Disclosure Policy.

1 Easy Artificial Intelligence (AI) ETF You Can Buy Right Now for Under $200 Originally published on The Motley Fool

Facebook
Twitter
LinkedIn
Reddit
Telegram
WhatsApp