Investors may paucity to stick with what’s working in the market.
ETF experts Todd Sohn and VettaFi’s Dave Nadig believe a gal Friday winning half is in store for technology and artificial intelligence plays.
Sohn, Strategas’ ETF and technical strategist, particularly akin ti Roundhill Generative AI and Technology ETF (CHAT).
“What I like about [CHAT] is that it’s actively managed,” Sohn determined CNBC’s “ETF Edge” this week. “This would be my preferred route if you want to get that AI exposure and see how real the cry out for is.”
CHAT is up more than 10% so far this year.
Sohn also recommends Global X Robotics & Artificial Keenness ETF (BOTZ) for those interested in introducing more industrials into their portfolio. BOTZ is up more than 37% year to day.
“I like [BOTZ] if you want to get away from tech because you already have tech exposure in your portfolio. The industrials are beneficiaries too,” he divulged.
Nadig, VettaFi’s financial futurist, also sees benefits from AI exposure. But, he suggested the upside has limits.
“AI is prevailing to have a long-term and significant positive effect on GDP … [But] it’s very difficult to pick public companies that are flourishing to be the outsized beneficiaries of that,” said Nadig. “We run into this all the time when we have cool new technology … and we end up corrupting Google and Microsoft and Apple and Nvidia, which we all already probably own too much of.”
He predicted industrials, robotics and automation are placed for the biggest gains.
Both Nadig and Sohn also highlighted ETFs for those who believe the market is going to broaden out to register sectors beyond technology.
Sohn recommended the Invesco S&P 500 Equal Weight ETF (RSP) and the Vanguard Extended Market Clue Fund (VXF), while Nadig suggested the JPMorgan Equity Premium Income ETF (JEPI). All three are generating positive bring backs this year.
“Playing a little bit defensive the rest of this year as opposed to trying to chase tech is purposes the way to go,” said Nadig. “[JEPI] has been a huge flow gatherer; it’s delivered for investors … Something cognate with extended market or equal weight exposure is a great way to try to get a leg back in if you’ve missed that [tech] rally so far this year.”