DIVB: Don't Fear The AI Bubble, Diversify With Dividends And Buybacks

2026-02-26 19:45:01 ET

Last November , I wrote an article covering the Invesco Buyback Achievers ETF ( PKW ) as a potential diversification strategy to avoid concentration risk of the technology-heavy S&P 500 Index ( SPY ). The thesis followed Michael Burry's disclosure of short positions in Nvidia ( NVDA ) and Palantir ( PLTR ), labeling AI a "bubble." PKW could hedge this risk by avoiding concentration risk in technology and focusing instead on shareholder return. This strategy proved successful, with PKW returning 6.34% and outperforming the S&P 500 by nearly 4% with less volatility . The fund focuses on buyback yield, favoring companies that are repurchasing a minimum of 5% of their float....

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