1 No-Brainer Artificial Intelligence (AI) ETF to Buy Now for Under $200

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Artificial intelligence (AI) stocks have soared into the hundreds and even thousands of dollars in recent days, and you may feel that some are out of reach. In fact, until recently, the players loved it Nvidia And Broadcom announced a stock split to bring down its high-flying stock prices. But what if I told you that today, you can buy exposure to many exciting AI players, including in-market giants, for less than $200?

It's not too good to be true. You can actually do this by joining an AI Exchange Traded Fund (ETF). These funds have a wide range of AI players, giving you the opportunity to benefit from many potential winners — without the hard work of picking stocks one by one. A great ETF to consider Round Hill Generative AI and Technology ETF (NYSEMKT:CHAT). It's trading for about $37 today, so you could buy a few shares with $200 — and instantly invest in dozens of promising AI stories. Let's find out more.

Image source: Getty Images.

How to Buy ETFs

First, a quick word about ETFs. These funds trade daily like stocks, and you can buy them like you would stocks — making it easy for you as a stock investor to incorporate them into your investing routine. One thing to keep in mind is that they come with a fee called an expense ratio. You'll want to make sure to invest in ETFs with expense ratios below 1% so those fees don't eat into your returns over time.

Now, let's talk about Round Hill AI and Tech ETFs. Although it's actively managed, meaning the managers pick stocks for the fund, its expense ratio is only 0.75% — so it fits our investment criteria. The fund is fairly new on the scene, having launched about a year ago, but since then it has climbed 45%, largely outperforming the S&P 500.

The fund supports companies involved in creative AI or the use of AI systems to generate new data. These players may develop platforms for AI training, infrastructure for workflows, or be involved in enterprise or consumer software, for example.

The fund's high holdings at the moment probably won't surprise you. Among them are Nvidia, MicrosoftAnd the alphabet5% to 8% by weight. But the Roundhill fund doesn't stop there and includes the iPhone giant and many others in the field. apple A software as a service company Palantir Technologies.

Advantage of Artificial Intelligence ETF

Of course, the fund's double-digit gains may seem small compared to the performance of some individual players — like Nvidia — which have been skyrocketing. But here is the benefit of investing in this ETF. Over time, you can benefit from not just one AI winner, but many. And if AI market growth predictions are correct – analysts expect the AI ​​market to exceed $1 trillion by the end of this decade – this could result in significant gains for a number of players.

Investing in an AI ETF also reduces your risk because you're not relying on the successes of just a few players — and if some stocks disappoint, the positive performance of others can compensate. So investing in this type of fund is a safer way to bet on this high-growth field than investing in just one or two individual stocks.

All of this means that, today, in the early days of the AI ​​development story, it's a fantastic idea to bet on a variety of AI companies that will lower their earnings in the near term and possibly even in the long term. can do And by investing in the Round Hill ETF you don't have to do the heavy lifting of stock picking, it's a no-brainer investment to make now and hold onto as this AI growth story unfolds. .

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Suzanne Frey, an Alphabet executive, is a member of The Motley Fool's board of directors. Adria Cimino has no position in any stocks. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends Broadcom and the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a Disclosure Policy.

1 No-Brainer Artificial Intelligence (AI) ETF to Buy Now for Under $200 was originally published by The Motley Fool.

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