– ETF experts Todd Sohn and Dave Nadig predict a second winning half for technology and artificial intelligence (AI) plays in the market.
– Todd Sohn recommends Roundhill Generative AI and Technology ETF (CHAT) as a preferred route for AI exposure due to its active management. CHAT has gained over 10% year-to-date.
– Sohn also suggests Global X Robotics & Artificial Intelligence ETF (BOTZ) for those looking to diversify their portfolio with industrials. BOTZ has seen a growth of over 37% year-to-date.
– Dave Nadig believes that while AI will have a positive effect on GDP in the long term, it's difficult to identify public companies that will be the major beneficiaries. He emphasizes the potential gains in industrials, robotics, and automation sectors.
Both experts highlight ETFs for investors who expect the market to broaden beyond technology. Sohn recommends Invesco S&P 500 Equal Weight ETF (RSP) and Vanguard Extended Market Index Fund (VXF)
– while Nadig suggests JPMorgan Equity Premium Income ETF (JEPI). All three have generated positive returns this year.
Nadig advises a defensive approach for the rest of the year, focusing on opportunities beyond tech. He mentions JEPI as a significant flow gatherer
– that has delivered for investors, and suggests extended market or equal weight exposure as a way to catch up on the tech rally.