Buy These 4 ETFs in 2024 and Never Work Again

Summary

This video script discusses the potential of investing in AI funds, highlighting the impressive growth of Nvidia and the broader AI market's expected expansion. The host recommends four AI-focused ETFs for long-term investment, emphasizing diversification and the importance of understanding each fund's strategy. The script also touches on the importance of cybersecurity in the AI era, suggesting the Wisdom Tree Cyber Security Fund as a way to capitalize on the growing need for data protection.

Takeaways

• 📈 Investing in Nvidia 2 years ago could have turned $10,000 into over $100,000, illustrating the potential of AI investments.
• 🌐 The global AI market is expected to grow 12 times in size over the next 8 years, with a CAGR of nearly 37%, significantly outpacing the S&P 500's historical average.
• 💡 The video discusses the best AI funds to invest in for long-term growth without relying on luck, emphasizing diversification and market trends.
• 📊 The S&P 500 and NASDAQ 100 are compared, with the latter offering advantages such as a tech-focused composition and higher historical returns.
• 💼 The NASDAQ 100's performance is attributed to its top holdings, which include major AI and tech companies like Microsoft, Apple, Nvidia, and Google.
• 🛡️ The speaker recommends the VanEck Semiconductor ETF (SMH) for targeted exposure to the chip companies fueling AI advancements, highlighting its past performance and future potential.
• 🔮 The Roundhill Generative AI Technology ETF (CHAT) is introduced as an actively managed fund covering various aspects of generative AI, including platforms, infrastructure, and software.
• 🛡️ With the rise of AI, the cybersecurity market is booming, and the Wisdom Tree Cybersecurity Fund (WCBR) is suggested for capturing growth in cloud security, expected to grow six times faster than the broader cybersecurity market.
• 🔑 The importance of understanding each ETF's stock selection, rebalancing strategy, and management fees is emphasized for building a well-rounded portfolio.
• 👤 The speaker discloses their background in electrical engineering and data science and clarifies that the advice is for educational purposes only, not financial advice.
• 🔒 The video is sponsored by Delete Me, a service that removes personal information from online data brokers, highlighting the importance of data privacy in the age of AI.

Q & A

What was the potential return on investment if someone had invested $10,000 in Nvidia 2 years ago?

If someone had invested $10,000 in Nvidia 2 years ago, they would have just over $100,000 today, according to the video script.

What is the expected growth rate of the global artificial intelligence market over the next 8 years?

The global artificial intelligence market is expected to grow 12 times in size over the next 8 years, which is a compound annual growth rate of almost 37%.

Why is the NASDAQ 100 considered a good investment according to the video?

The NASDAQ 100 is considered a good investment because it has three specific advantages: it is tech-focused, includes non-US companies, and tracks 100 companies, allowing for diversification without sacrificing the potential for significant growth.

What is the role of the Vanek Semiconductor ETF (SMH) in an investment portfolio?

The Vanek Semiconductor ETF (SMH) provides targeted exposure to the largest chip companies, which are crucial for the development and growth of AI technologies, offering a concentrated investment in this sector.

What are the advantages of the Roundhill Generative AI Technology ETF (CHAT) over other funds?

CHAT is actively managed, focusing on companies involved in generative AI platforms, infrastructure, and software, and it is not overallocated to software companies beyond the biggest tech giants, providing a balanced approach to capturing AI growth.

How does the Wisdom Tree Cyber Security Fund (WCBR) differentiate itself in the market?

WCBR focuses on companies with a broad selection of products and services that fit multiple cybersecurity themes, and it includes companies with a compound annual revenue growth rate exceeding 20%, indicating a strong growth potential.

What is the expected compound annual growth rate for the global cybersecurity market over the next 8 years?

The global cybersecurity market is expected to grow at a compound annual growth rate of 11% over the next 8 years, with the cloud security market expected to grow even faster.

Why is the NASDAQ 100 outperforming the S&P 500 despite having the same top five holdings?

The NASDAQ 100 outperforms the S&P 500 due to its focus on tech companies, inclusion of non-US companies, and a more concentrated portfolio of 100 companies, which allows for greater growth potential.

What is the significance of the S&P 500's average annual rate of return compared to the NASDAQ 100's performance?

The S&P 500 has an average annual rate of return of 12.6% over the last 15 years, while the NASDAQ 100 has grown by an average of 19.4% per year over the same period, indicating the NASDAQ 100's higher growth potential.

How does the video script suggest building a diversified AI investment portfolio?

The script suggests starting with a broad market exposure like the NASDAQ 100, then adding targeted funds like the Vanek Semiconductor ETF (SMH), Roundhill Generative AI Technology ETF (CHAT), and the Wisdom Tree Cyber Security Fund (WCBR) to capture growth in specific AI sectors.

What is the role of the Delete Me service mentioned in the video?

Delete Me is a subscription service that helps protect personal data privacy by removing personal information from hundreds of online data brokers, providing a detailed privacy report and continuous scanning for new data listings.