I'm not saying I'm expecting a crash to the same degree as what we saw more than a quarter century ago. But what I am saying is that market participants may become more discriminating with their investment choices, and those companies in the AI space that are the most efficient could see the greatest gains. In other words, I think being a stock picker could be a good thing in 2026.That said, it will be interesting to see if 2026 bring sabot uncertainty around how easy the gains from AI exposure will be. The ...

Core Viewpoint - The article emphasizes the value of exchange-traded funds (ETFs) for both passive and active investors, highlighting the abundance of ETFs available in the market today, which cater to various investment strategies [1]. Group 1: Benefits of ETFs - ETFs provide highly diversified investment opportunities, allowing investors to hold stakes in a wide range of companies with portfolios that are automatically rebalanced based on specific criteria [2]. - The cost-effectiveness of ETFs is notable, as they typically charge only a few basis points for portfolio creation and rebalancing, contrasting with the higher fees charged by fund managers in the past [2][3]. - The ability to compound returns over time is enhanced by the low fees associated with ETFs, which helps in effective portfolio diversification and risk management, contributing to the influx of trillions of dollars into these investment vehicles [3]. Group 2: Recommended ETFs - The Vanguard Utilities Index Fund ETF (VPU) is highlighted as a top option for investors interested in the utilities sector, which is expected to benefit from trends in AI and electrification [4][6]. - VPU tracks the entire utilities sector, generating revenue from companies that provide electricity and natural gas utilities, making it a suitable choice for those looking to invest in the infrastructure supporting next-generation technologies [5]. - The utilities sector is projected to be a significant long-term winner due to its stable balance sheets and the increasing demand for data and computing power, positioning utilities companies for potential outperformance [6]. Group 3: Expense Ratios and Yields - VPU has an expense ratio of 0.09%, while the Vanguard Total Stock Market (VTI) offers exposure to all U.S.-traded stocks at a 0.03% expense ratio [7]. - The iShares 20+ Year Treasury Bond (TLT) provides a yield of 4.3% with a 0.15% expense ratio, indicating a variety of investment options available to investors [7].