There's no denying that some big-name growth stocks, including some with clear AI ties, have recently pulled back. But that doesn't mean the AI investment thesis is on its last legs.
There's no denying AI has again been a captivating theme for investors and technology enthusiasts this year. But that proposition could be ramped up in 2026.
The Invesco QQQ Trust (NASDAQ:QQQ ) , SPDR S&P 500 ETF (NYSEARCA:SPY ) and the SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA ) are among the market's biggest ETFs, each tracking a different theme.
The iShares Expanded Tech-Software Sector ETF offers focused software exposure, but the Invesco QQQ Trust ETF remains the superior tech play. QQQ's broader diversification, mega-cap inclusion, and balanced tech exposure deliver better risk-adjusted returns and defensiveness across market cycles than IGV. IGV's higher concentration and valuation make it riskier, while QQQ captures AI growth and mega cap defensiveness without sacrificing upside.
The Invesco QQQ Trust (NASDAQ:QQQ ) has become the default setting for anyone who wants a piece of the Nasdaq's biggest names.
We've likely all heard about the Dogs of the Dow strategy by now, which entails buying up the highest-yielding, often worst-performing stocks within the Dow Jones Industrial Average at the start of the new year.
Count 2025 as yet another year in which the AI investment theme has loomed large. That's been to the benefit of market participants with exposure to AI-related equities and ETFs.
As was the case with internet stocks in the late 1990s and the housing market circa 2006, the AI industry is an epicenter of bubble talk. Predictably, that chatter is relevant to investors engaging with AI stocks and ETFs heavily allocated to those names.
The AI boom has been a driving force for the tech-heavy indices, and while a correction could have the potential to be more painful for the growth- and AI innovation-heavy Invesco QQQ Trust (NASDAQ:QQQ) and other similar ETFs out there, longer-term investors who can weather a storm without breaking a sweat might be in for greater rewards over the long run.
Perhaps living up to the dubious reputation of Fridays in October, stocks were drubbed last Friday. The Nasdaq-100 (NDX) and the S&P 500 slid 3.56% and 2.71%, respectively.
There's no denying that the artificial intelligence (AI) trade has provided momentum to ETFs such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Meanwhile, investors have pondered the extent of AI's transformative nature and how much adopters are going to dole out in the AI arms race.
Much has been made about the practicality of artificial intelligence spending. This is understandable, because some of the numbers floating around are astronomical.