2 Technology ETFs to Invest $500 in Right Now
VanEck's ETF offers exposure to the ongoing semiconductor supercycle.
Both of these funds offer innovative and diversified options for investors.
10 stocks we like better than Global X Funds - Global X Artificial Intelligence & Technology ETF ›
The U.S. stock market has kept investors on the edge in early 2025. Increasing geopolitical tensions, election-year jitters, and President Donald Trump's tariff policies created a shaky start for the year.
But things started changing post-April. Inflation data has eased, and corporate earnings were better than expected. That combination improved investor sentiment for technology stocks.
What's driving this renewed interest in technology stocks? It is primarily artificial intelligence (AI). As demand for AI-driven innovation and cloud infrastructure grows, so does interest in the companies that power these technologies. However, for everyday investors, picking individual winners among companies with competing technologies and elevated valuations can be risky.
Exchange-traded funds (ETFs) help fill this need. Even if you have a limited budget of $500, investing in either of these two diversified tech ETFs can provide an innovative and low-risk way to build a strong long-term portfolio.
With the pace of AI adoption rising rapidly across all walks of life and enterprises increasingly embedding AI-powered tools into core operations, many investors are understandably keen to get exposure to this multi-trillion-dollar market. The Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ), a passively managed ETF that tracks the Indxx Artificial Intelligence & Big Data Index, offers a less risky yet pure-play exposure to the ever-evolving AI landscape.
The Global X fund holds stakes in over 80 companies across the U.S., Europe, and Asia, including established and innovative players in areas like big data, machine learning, and AI. The holdings include top-notch players such as Nvidia, Microsoft, Palantir Technologies, ASML, and Baidu. It is well-diversified across the AI value chain, with exposure to hardware, software, and platform players in both the U.S. and international markets. The ETF is market-cap-weighted, meaning that larger companies have a greater influence on its performance.
The fund's expense ratio (the annual percentage of funds that are used to cover the ETF's operational costs) of 0.68% is higher than the average expense ratio of index ETFs. However, this is justified since the ETF tracks a thematically constructed index, is rebalanced semi-annually, and involves multiple international holdings. With $3.45 billion in assets under management (AUM), the ETF is also significantly liquid.
Considering its numerous advantages, Global X Artificial Intelligence & Technology ETF may prove to be an excellent way for risk-averse long-term investors to invest $500 in AI.
Going hand in hand with the AI boom is the insatiable demand for underlying AI-optimized hardware infrastructure, particularly in data centers, the automotive sector, and industrial applications. Hence, it is no surprise that semiconductor players have been some of the biggest beneficiaries of the ongoing AI revolution. While semiconductors are a cyclical industry, the upcycle has definitely been extended by several secular tailwinds.
However, suppose investors want a more diversified and less risky exposure to this trend without speculating which chipmaker will be the next winner. In that case, the VanEck Semiconductor ETF (NASDAQ: SMH) could prove to be a powerful solution.
The VanEck fund is a pure-play semiconductor ETF tracking the performance of the MVIS US Listed Semiconductor 25 Index, a modified market-cap-weighted index focusing on 25 of the largest and most liquid U.S.-listed semiconductor companies. Although the index's performance is influenced mainly by the larger players, it also uses capping rules to limit overexposure to any single company.
Currently, companies such as Nvidia, Taiwan Semiconductor Manufacturing, ASML, Broadcom, and Advanced Micro Devices account for nearly half of the VanEck fund's total asset holdings. Subsequently, investors are gaining exposure to robust secular trends, including AI, 5G, autonomous vehicles, and edge computing. Additionally, the ETF provides exposure to prominent U.S.-listed international semiconductor companies.
SMH has around $25.2 billion in AUM and is highly liquid. It charges a very modest expense ratio of 0.35% and is a cost-effective investment vehicle.
Hence, it is evident that the VanEck fund offers an innovative and diversified way to benefit from the upside in the semiconductor industry while controlling for company-specific risks. For investors with $500 or more and a long-term mindset, the VanEck Semiconductor ETF deserves a close look.
Before you buy stock in Global X Funds - Global X Artificial Intelligence & Technology ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Global X Funds - Global X Artificial Intelligence & Technology ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!*
Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of June 23, 2025
Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Baidu, Microsoft, Nvidia, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends 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.
2 Technology ETFs to Invest $500 in Right Now was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
Did Plug Power Stock Deserve Today's Price Pop?
Key Points Susquehanna analyst Biju Perincheril raised his price target on Plug Power stock by 80% today. He also raised it by just $0.80. And he didn't even call the stock a buy. 10 stocks we like better than Plug Power › Shares of Plug Power (NASDAQ: PLUG), one of the highest-profile companies involved in the hydrogen power revolution, enjoyed a solid rise this morning as its shares rocketed 8.1% through 10:10 a.m. ET. The reason for the rise is no mystery: This morning, Susquehanna analyst Biju Perincheril raised his price target on Plug stock by an astounding 80% -- from $1 a share to $1.80. The bigger question is whether Plug Power stock deserved to jump even 8.1% on this change in one analyst's opinion. And whether investors should buy Plug Power stock. Is Plug Power's pop justified? The first question is tricky. On the one hand, an 80% price target hike seems unusually generous, and hints at some important underlying change in the company affected. On the other hand, a price target change of only $0.80 doesn't. It's also worth pointing out that after Plug's share price jump today, the stock already costs more than Perincheril says it's worth -- more than $1.90 per share. And Perincheril is only "neutral" on the stock. He doesn't say you should buy it. Is Plug Power stock a buy? Neither do I. Perincheril argues, in a note on The Fly, that renewable energy stocks that deserve buy ratings are those with a strong U.S. manufacturing presence and "robust backlogs" such as GE Vernova and First Solar. Most of Plug's manufacturing assets are located in the U.S., true, but the company makes no mention of strong backlog in its latest 10-K filing. To the contrary, sales dropped nearly 30% last year, which suggests backlog may actually be shrinking. With a long history of losing money and burning cash, I suspect Plug stock is still a sell. Should you invest $1,000 in Plug Power right now? Before you buy stock in Plug Power, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Plug Power wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends First Solar. The Motley Fool recommends Ge Vernova. The Motley Fool has a disclosure policy. Did Plug Power Stock Deserve Today's Price Pop? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 minutes ago
- Yahoo
GE Vernova to buy France's Alteia for enhancing AI tools for utilities
By Sumit Saha (Reuters) -Power equipment maker GE Vernova will buy France-based Alteia, which makes artificial intelligence-based tools that allow utility companies to review their grids, it said on Monday. GE Vernova already offers Alteia's software to customers through its GridOS Visual Intelligence. The tool helps utilities assess damage and inspect assets along thousands of miles of electrical lines. The acquisition will enhance this system through visual and operational data, allowing the companies to "see and sense" the grid, GE Vernova said. The company did not disclose the financial terms of the acquisition, which is expected to close on August 1. GE Vernova has highlighted that growth in its electrification software segment — which includes the GridOS system — could rapidly accelerate, RBC Capital Markets analyst Christopher Dendrinos said. The segment has been growing at mid-single digit percentage rates in the past couple of years, he said. Surging power demand from data centers used for AI and cryptocurrency technologies has boosted GE Vernova, which was spun off from General Electric last year. The power demand is expected to hit an all-time high this year. The company is expected to release its second-quarter earnings report on July 23 before the bell. Sign in to access your portfolio
Yahoo
11 minutes ago
- Yahoo
Why Shiba Inu Is Surging Today
Key Points Cryptocurrencies largely advanced after the U.S. House of Representatives passed several crypto bills last week. The crypto rally is broadening out to altcoins. 10 stocks we like better than Shiba Inu › Since the market closed on Friday, the price of Shiba Inu (CRYPTO: SHIB) had traded 7.6% higher as of 10:15 a.m. ET today. There's no obvious reason behind the move, although the crypto sector largely moved higher this weekend due to several events. President Trump signs stablecoin bill into law President Donald Trump signed the Genius Act into law after the market closed on Friday. The Genius Act was one of three bills passed by the U.S. House of Representatives last week during so-called Crypto Week, and will look to create a framework for stablecoins, which are digital assets pegged to a commodity or currency. Investors likely believe that the three bills passed last week could create a regulatory environment that better positions crypto for the long term. In other crypto news, Trump Media & Technology Group announced today that it had purchased $2 billion of Bitcoin, the world's largest cryptocurrency. The crypto custodian firm BitGo also reportedly filed for an initial public offering, as momentum in the crypto sector is leading start-ups to consider going public. Additionally, the crypto rally seems to be broadening. Much of it had been dominated by Bitcoin and a few other cryptocurrencies for most of the year. But the new crypto legislation has lit a spark under cryptocurrencies like Ethereum, which seems to be benefiting from the stablecoin legislation because some of the largest stablecoins are issued on Ethereum's network. Shiba Inu was launched on top of Ethereum's network as an ERC-20 token, although has since built a layer-2 solution to conduct off-chain transactions. Shiba Inu often moves for no apparent reason It's not uncommon to see Shiba Inu move with the sector, although often with more volatility. While the token has advanced since launching in 2020, particularly with its layer-2 solution Shibarium, I still view it largely as a meme token and therefore advise investors to stay away. Should you buy stock in Shiba Inu right now? Before you buy stock in Shiba Inu, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Shiba Inu wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Bram Berkowitz has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy. Why Shiba Inu Is Surging Today was originally published by The Motley Fool
