S&P 500 Offers Broad AI Exposure As Global Spending Surges
-
Annual global spending on AI is expected to soar from $197 billion in 2023 to $1.8 trillion in 2030, a compound annual growth rate of 37%.
-
Many S&P 500 companies are investing in AI, making an S&P 500 index fund a good way to gain AI exposure.
-
The Vanguard S&P 500 ETF specifically is a strong AI investment option due to its low fees, history of matching the market, and high 10-13% historical returns.
-
Investors should avoid more expensive, underperforming AI-focused funds like BOTZ, ARKQ, and IRBO.
-
A blended strategy of an S&P 500 index fund plus select AI stocks allows for some added risk and potential outperformance.