GOOGL - Vanguard's S&P 500 ETF Will Thrive After The AI Party Ends

2024-06-23 01:38:44 ET

Summary

• Vanguard's S&P 500 ETF has been an "AI winner," as top AI stocks are among the fund's biggest holdings.
• However, the fund has enough non-tech stocks to thrive after the AI party ends.
• Although the growth of generative AI is a long-term secular trend, the current level of investment in it might require a pullback.
• The S&P 500's "out of favor" sectors like energy could be helpful here.
• Financials--while performing well this year--are also not strongly correlated with tech most of the time. They have a growth catalyst in the form of rising investment banking fees.

The Vanguard S&P 500 ETF ( VOO ) is one of my longest-standing portfolio holdings. Having bought a few thousand dollars' worth of VOO during the March 2020 COVID-19 market crash, I’ve had good results with it. Since initiating my position in VOO, I’ve gained about 70% and received some dividends to boot. Not a bad showing, all things considered....

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