Investors may want to stick with what works in the market.
ETF experts Todd Sohn and VettaFi’s Dave Nadig think the tech and artificial intelligence sector is on the verge of a second victory.
Sohn is an ETF and technology strategist at Strategas and is a particular favorite of the Roundhill Generative AI and Technology ETF (CHAT).
“One thing I like about (CHAT) is that it’s actively managed,” Sohn said this week on CNBC’s “ETF Edge.” “If you want to get in touch with AI and see how real the demand is, this would be my preferred route.”
CHAT is up more than 10% so far this year.
Mr. Sun also recommends Global X Robotics & Artificial Intelligence ETF (BOTZ) For those interested in bringing more industrial into their portfolio. BOTZ is up more than 37% so far this year.
“If you want to get rid of tech, I like (BOTZ) because you already have tech in your portfolio. Industrials are also beneficiaries,” he said.
Nadig, a financial futurist at VettaFi, also sees benefits in AI. However, he said the upside is limited.
“AI will have a long-term and significant positive impact on GDP … (but) it’s hard to single out public companies that will be huge beneficiaries of it,” Nadig said. “When we have cool new technology, we always Yes it will happen…we will end up buying Google and Microsoft and apple and Nvidia, we may already have too many. “
He predicts that industrial, robotics and automation will reap the biggest gains.
Nadig and Sohn also highlighted ETFs for those who believe the market will expand to include industries beyond tech.
Mr. Sun recommended 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 produced positive returns this year.
“For the rest of the year, being a little defensive rather than trying to chase tech is probably the right way to go,” Nadig said. “(JEPI) has been a huge traffic aggregator; Provided … if you’ve missed the (tech) rally so far, something like expanding the market or equal weight exposure is a good way to try to get back on your feet. This year.”
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