The tech sector is among the best-performing corners of the market so far in 2025, with sector-wide returns of nearly 28% year-to-date (YTD) compared to over 17% for the overall S&P 500. In fact, the tech sector's performance—and the outsized returns of a handful of big names in particular—has been enough to prompt speculation among investors about an AI-related bubble that could be helping prop up other large chunks of the market that would otherwise be struggling.
OpenAI's partnership spree with AMD, Oracle & NVIDIA fuels AI boom -- ETFs like IYW, FTEC, FDN, AIQ & XT stand to gain.
The S&P 500 tops 6,400 for the first time as large-cap tech and AI-fueled gains propel the index. Tap AI-based ETFs like AIQ and ARKQ.
NVDA's surge past a $4T market cap spotlights AI's explosive growth and the ETFs riding this tech-fueled momentum.
As AI surges and tariffs loom, ETFs like BOTZ, MAGS, VIG and GLD are emerging as top picks for the rest of 2025.
AIQ is a great example of an ETF that does what it is supposed to do, but that doesn't make it a great fund. It ends up looking like other, more well-known index ETFs because of how correlated tech and growth stocks have become. AIQ's valuation is reasonable, and the portfolio is constructed in line with its mission.
AIQ offers diversified exposure to high-growth AI, robotics, and big data companies globally, spanning both established leaders and emerging innovators. The ETF has outperformed the S&P 500 year-to-date, benefiting from broad sector coverage, active weighting, and the inclusion of non-US holdings. AIQ's competitive fees, liquidity, and strong trading volume make it an attractive vehicle for traders and investors seeking access to the AI and technology theme.
Dan Ives, Wedbush Securities global head of technology research, and Todd Rosenbluth, VettaFi director of research, sit down with CNBC's Dom Chu and share other themes they're seeing in the ETF space this summer.
For those willing to invest in the Vanguard Mega Cap Growth Index, being passively invested comes with risks, because of DeepSeek changing the AI landscape and the advent of tariffs. By contrast, this thesis aims to show that an active management strategy, available through the Global X Artificial Intelligence & Technology ETF, makes more sense. Active funds like AIQ can rapidly pivot away from companies overexposed to trade-related risks, while increasing exposure to emerging AI players.
The April drop to $31, based on current EPS growth rates, could represent a market bottom. However, the risk of a potential oversupply scenario in the data center market is increasing, which could trigger a mean reversion in EPS growth expectations as well. I identify a potential bottom at an -11% distance, around the $30 level.
When the market gets rough, advisors and investors turn to trusted sources for insights and data. VettaFi is grateful that this occurred last week.
Since ChatGPT debuted in late 2022, artificial intelligence has exploded into investor consciousness.