Investing in artificial intelligence (AI) is easier than ever, thanks to exchange-traded funds (ETFs) that give investors exposure to leading tech companies.
One such ETF is the iShares Expanded Tech Sector ETF, managed by BlackRock, the world’s largest asset manager. This fund holds stocks in major AI-focused companies, including Nvidia, Microsoft, Apple, and Meta, making it a strong bet for long-term growth.
Since its launch in 2001, the iShares ETF has delivered an 11% compound annual return, outperforming the S&P 500’s 8.5% average. If this trend continues, an investment of $200,000 today could grow to $1 million by 2040. The fund has performed even better in the last decade, returning 20.3% annually, driven by rising demand for cloud computing, enterprise software, and AI.
The ETF’s top four holdings—Meta (9.63%), Apple (8.00%), Nvidia (7.99%), and Microsoft (7.62%)—are some of the biggest players in AI. Meta uses AI for ad targeting and content recommendations and has developed powerful AI models like Llama.
Apple is integrating AI into its devices through Apple Intelligence and a smarter Siri. Microsoft has partnered with OpenAI to expand its AI offerings and leads in cloud computing with Azure. Nvidia dominates AI hardware, powering advancements in AI models, robotics, and autonomous driving.
Experts believe AI could add $15.7 trillion to the global economy by 2030, boosting stocks in this ETF. While no investment is risk-free, and AI adoption may not grow as fast as predicted, the iShares ETF remains a strong option for those looking to invest in the future of AI. If AI continues to expand, this ETF could help investors multiply their money fivefold by 2040.
