1 No-Brainer Artificial Intelligence (AI) ETF to Confidently Buy With $70 for 2026
The Motley Fool·2025-12-13 11:31

Core Insights - The Roundhill Generative AI and Technology ETF offers a straightforward investment opportunity in the AI sector, which is expected to drive stock market returns in 2026 [1][2][12] - The ETF consists of a concentrated portfolio of 50 stocks, with its top five holdings accounting for 25.9% of its total value, indicating a lack of diversification [5][7] - The ETF has significantly outperformed the S&P 500, achieving a 53% return in 2025 compared to the S&P 500's 16% [12] ETF Composition - The top five holdings in the Roundhill ETF include Alphabet, Nvidia, Microsoft, Meta Platforms, and Broadcom, which are key players in the AI boom and have delivered a median return of 37% this year [7][12] - Other notable stocks in the ETF include Advanced Micro Devices, Palantir Technologies, CoreWeave, Micron Technology, and Snowflake, which are also contributing to the AI infrastructure and software development [10] Performance Metrics - The Roundhill ETF was established in 2023 and has shown strong performance, but it lacks a long track record and has not been tested in a prolonged bear market [12] - The ETF has an expense ratio of 0.75%, which is higher than many passive index funds, but the current high returns may justify these costs [13][14] - Future growth in AI infrastructure spending is projected to reach $4 trillion by 2030, suggesting that the AI sector may still be in its early stages [14][15]

1 No-Brainer Artificial Intelligence (AI) ETF to Confidently Buy With $70 for 2026 - Reportify