Nvidia, Microsoft, and Alphabet Are Top Positions in This Magnificent ETF. Here's Why It's a Buy Now.

Motley Fool03-29

While some of the most popular artificial intelligence (AI) stocks are soaring, many others have lost significant amounts of value. It highlights the perils of picking winners and losers in new...

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Here's Why It's a Buy Now.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-29 17:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2024/03/29/nvidia-microsoft-alphabet-magnificent-etf-buy-now/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>While some of the most popular artificial intelligence (AI) stocks are soaring, many others have lost significant amounts of value.\n\n\n\n\n\n\n\nIt highlights the perils of picking winners and losers in new...</p>\n\n<a href=\"https://www.fool.com/investing/2024/03/29/nvidia-microsoft-alphabet-magnificent-etf-buy-now/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1914381329.SGD","symbol_name":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","start_time":0,"source_url":"https://www.fool.com/investing/2024/03/29/nvidia-microsoft-alphabet-magnificent-etf-buy-now/","article_id":"2423455702","we_media_id":null,"thumbnails":["https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F770529%2Fa-persons-hands-typing-on-a-keyboard-with-a-digital-rendering-of-a-computer-screen-popping-up.jpg&op=resize&w=165&h=104"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2423455702","pubTimestamp":1711706160,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Picking winners and losers in the artificial intelligence industry won't be easy, but with this ETF, investors won't have to.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU0494093205.USD":"贝莱德ESG灵活多元资产A2 USD-H","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU0171293334.USD":"贝莱德英国基金A2","AMZN":"亚马逊","SSO":"两倍做多标普500ETF","BK4525":"远程办公概念","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","IVV":"标普500指数ETF","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","GB00B4LPDJ14.GBP":"FUNDSMITH EQUITY \"R\" (GBP) ACC","BK4524":"宅经济概念","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4527":"明星科技股","MSFT":"微软","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","SDS":"两倍做空标普500ETF","SH":"标普500反向ETF","BK4503":"景林资产持仓","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","SPXU":"三倍做空标普500ETF","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","UPRO":"三倍做多标普500ETF","BK4504":"桥水持仓","GOOG":"谷歌","LU0557290698.USD":"施罗德环球可持续增长基金","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","SPY":"标普500ETF","LU0528227936.USD":"富达环球人口趋势基金A-ACC","GOOGL":"谷歌A","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","NVDA":"英伟达","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","FDN":"First Trust Dow Jones Internet I","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","LU0079474960.USD":"联博美国增长基金A","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc",".SPX":"S&P 500 Index","OEX":"标普100","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","GB00B4QBRK32.GBP":"FUNDSMITH EQUITY \"R\" (GBP) INC","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","BK4532":"文艺复兴科技持仓","OEF":"标普100指数ETF-iShares","BK4592":"伊斯兰概念","LU0061474960.USD":"天利环球焦点基金AU Acc"},"translate_title":"英伟达、微软和Alphabet是这只宏伟的ETF中的顶级股票。这就是为什么现在买。","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GOOGL":1,"GOOG":1,"MSFT":1,"NVDA":1,"FDN":1,"SPY":0.9,"AMZN":0.61,"UPRO":0.6,"OEF":0.6,"OEX":0.6,"SDS":0.6,"SH":0.6,"SPXU":0.6,"SSO":0.6,".SPX":0.6,"ESmain":0.6,"IVV":0.6},"content_text":"While some of the most popular artificial intelligence (AI) stocks are soaring, many others have lost significant amounts of value.\n\n\n\n\n\n\n\nIt highlights the perils of picking winners and losers in new industries like AI.\n\n\n\n\n\n\n\nExchange-traded funds (ETFs) can help investors earn strong returns while keeping their risk in check.\n\nArtificial intelligence (AI) could transform the economy by completing tasks humans can't, and by making existing workers more productive. Goldman Sachs believes the technology will add $7 trillion to the global economy within the next decade, whereas Cathie Wood's Ark Investment Management places that figure at $200 trillion. Investors are rushing to buy AI stocks like Nvidia, Microsoft, Alphabet, and Amazon, all of which have soared over the past year.But other AI stocks aren't faring so well. C3.ai stock more than doubled in 2023, but it remains 82% below its all-time high. Similarly, Upstart stock has plunged 93% from its best-ever level. Those cases prove that developing AI alone isn't enough -- companies need to build solid businesses.Separating the AI winners from the losers won't be easy for investors over the long term, but exchange-traded funds (ETFs) can eliminate that challenge.Image source: Getty Images.Exchange-traded funds can offer a great risk-reward balanceAn ETF can hold dozens or even hundreds of individual stocks, neatly packaged into one security for investors to buy. They offer exposure to specific segments of the market (like AI), and they are usually actively managed, which means a team of professionals will adjust the ETF's portfolio as necessary.That takes a lot of pressure off individual investors. Plus, since an ETF can hold so many stocks, one bad performer won't lead to catastrophic financial losses.A number of AI-focused ETFs are available to investors, but the Roundhill Generative AI and Technology ETF (CHAT 0.03%) stands out. It was launched in 2023, and it's already beating the return of the benchmark S&P 500 index. Here's why it's a buy now.The CHAT ETF holds several popular AI stocksThe CHAT ETF invests in companies developing the platforms, infrastructure, and software required to bring AI to life. The ETF owns 47 different stocks, but its top 10 holdings account for 45.5% of the total value of its portfolio.That top 10 (and the portfolio as a whole) includes some of the most popular names in the AI space:StockCHAT ETF Portfolio Weighting1. Nvidia8.36%2. Microsoft7.26%3. Alphabet (Google)5.55%4. Meta Platforms4.25%5. Adobe4.03%6. Salesforce3.55%7. Amazon3.27%8. Baidu3.23%9. Arista Networks3.10%10. ServiceNow2.92%Data source: Roundhill Investments. Portfolio weightings as of March 24, 2024 and subject to change.Nvidia produces the world's most powerful graphics processing units (GPUs) for data center infrastructure, which are designed to handle AI workloads. Its stock soared 239% last year, making it the best performer in the entire S&P 500 index.Microsoft, Alphabet, and Amazon are home to the world's largest cloud computing platforms, where millions of businesses can access AI models to build their own applications. Adobe is deploying generative AI to make its industry-leading photo and video editing software even more powerful, and Salesforce is using the technology to enhance its customer relationship management software for businesses.Several familiar names also sit outside of CHAT's top 10 holdings. They include Advanced Micro Devices, which develops AI chips for the data center and for computing purposes, and Oracle, which is a world-class data center operator for AI developers. Palantir Technologies and C3.ai also feature in the ETF.The CHAT ETF is beating the S&P 500The CHAT ETF is up 18.9% in 2024 already, crushing the 10.3% return of the S&P 500 index. The ETF launched in May 2023, and it has gained 41.7% since its inception, which trounces the 26.5% return of the S&P 500 over the same period.It's no surprise, given stocks like Nvidia and Meta Platforms have delivered triple-digit percentage gains over the past 12 months. Stocks like Microsoft, Salesforce, Amazon, AMD, and ServiceNow are all up better than 50% over the past year, too.Each of the companies in the CHAT ETF operate at the forefront of the AI revolution, and considering the substantial value this technology could create in the coming decade, it should continue to outperform the S&P 500.However, investors should be mindful of concentration risk. This ETF could plunge if AI fails to live up to the hype because most of the stocks mentioned above would lose a significant portion of their value.The CHAT ETF is a good option for investors looking for a simple way to own AI stocks as part of a diversified portfolio.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2423455702"}