1 No-Brainer Artificial Intelligence (AI) ETF to Buy With $40 During the Nasdaq Sell-Off

Anthony Di Pizio, The Motley Fool

Tue, Mar 11, 2025, 1:59 AM 5 min read

The Nasdaq Composite (NASDAQINDEX: ^IXIC) scale is location to astir each institution listed connected the Nasdaq banal exchange, galore of which run successful the exertion space. The highest-profile businesses successful that radical person mostly been leaders successful artificial quality (AI), and their stocks person produced immoderate of the champion returns implicit the past mates of years.

After delivering a beardown summation of 28.6% past year, the scale precocious entered correction territory, and has present fallen 13.4% from its grounds high. The marketplace jitters mightiness beryllium a large accidental for investors to bargain a handbasket of high-flying tech innovators astatine a discount. However, alternatively than picking idiosyncratic names, it mightiness beryllium a bully thought to bargain an AI-focused exchange-traded money (ETF) instead.

The iShares Future AI and Tech ETF (NYSEMKT: ARTY) was established successful 2018 nether a antithetic name, but it was reconstructed successful August past twelvemonth to put exclusively successful companies astatine the forefront of AI, including those processing information solutions, software, and infrastructure.

The ETF is down 20.6% from its caller precocious acceptable conscionable 3 weeks ago, and investors tin bargain a azygous stock for good nether $40.

ETFs tin clasp hundreds, oregon adjacent thousands of idiosyncratic stocks, but the iShares Future AI and Tech ETF lone holds 50. It's highly concentrated toward the AI themes I mentioned earlier, truthful it tin acquisition utmost volatility during periods of uncertainty. As a result, it's important to bargain it arsenic portion of a diversified portfolio of different funds and idiosyncratic stocks.

With that said, the apical 10 holdings successful the iShares ETF are among immoderate of the leaders successful AI hardware and software:

Data source: iShares. Portfolio weightings are close arsenic of March 6, 2025, and are taxable to change.

Broadcom is simply a multifaceted AI hardware company. On the 1 hand, it makes customized AI accelerators (a benignant of information halfway chip) for 3 hyperscale customers including Alphabet. On the different hand, it makes immoderate of the industry's champion information halfway networking equipment, similar its Tomahawk switches, which modulate however accelerated information travels from 1 constituent to another. Broadcom's AI gross soared 77% twelvemonth implicit twelvemonth to $4.1 cardinal during its astir caller 4th (which ended Feb. 2).