Two Outstanding ETFs to Invest in by 2025, Leveraging Rare Investment Chances
Investing in artificial intelligence (AI) and cryptocurrencies has been a lucrative strategy lately. For instance, the stock price of chipmaker Nvidia has soared over 840% since December 2022, while Bitcoin has returned over 520% during the same period. Industry experts believe this trend is set to continue into the upcoming years. After all, AI might be the most groundbreaking technological advancement since the invention of the lightbulb, and the launch of spot Bitcoin ETFs could pave the way for institutional investors to jump on the Bitcoin bandwagon.
Two easy ways to participate in this exciting market are by investing in the Vanguard S&P 500 Growth ETF and iShares Bitcoin Trust. Let's delve a bit deeper into these options.
Vanguard S&P 500 Growth ETF: AI's Growth Engine
The impact of AI on the global economy could be monumental, pushing the GDP growth by up to 21% over the next decade, according to experts from JPMorgan, Accenture, McKinsey, Goldman Sachs, and PwC. This technological revolution is expected to proceed swiftly, with tech stocks predicted to return 25% in 2025 by Dan Ives of Wedbush Securities.
To capitalize on this trend, you can invest in the Vanguard S&P 500 Growth ETF, which keeps a close eye on 209 growth stocks listed in the S&P 500. As much as 40% of this ETF's investments are concentrated in the technology sector, making it a prime choice for investors looking to tap into AI's potential.
Some of the ETF's top positions include leading tech companies like Nvidia, Alphabet, Apple, Microsoft, and Meta Platforms. It has delivered impressive returns, with a 76% increase in the last two years – performances that outstrip the S&P 500's 55% growth during the same timeframe.
Don't forget – the Vanguard S&P 500 Growth ETF still has a reasonable expense ratio of 0.1%, making it an affordable choice for investors.
iShares Bitcoin Trust: Institutional Bitcoin Adoption
Another interesting investment opportunity is Bitcoin, which could become even more attractive to institutional investors as spot Bitcoin ETFs remove traditional obstacles to buying and holding Bitcoin. Beneficiaries of this trend can include funds like the iShares Bitcoin Trust.
Michael Saylor, chairman of MicroStrategy, has argued that Bitcoin is unique because it's the only scarce commodity companies can add to their balance sheets that has repeatedly outperformed the S&P 500. With spot Bitcoin ETFs fast-tracking institutional adoption, the value of Bitcoin is predicted to rise even further.
The iShares Bitcoin Trust charges an annual fee of 0.25%, which is a cheaper alternative compared to the hefty transaction costs imposed by cryptocurrency exchanges and wallets for individual investors.
Including these two investment vehicles in your portfolio could offer a once-in-a-lifetime opportunity to harness the power of AI and the potential upside of Bitcoin.
Investing in the Vanguard S&P 500 Growth ETF allows you to capitalize on the predicted growth of tech stocks, particularly those related to AI, due to their significant representation in this ETF's portfolio. The top positions include tech giants like Nvidia, Alphabet, Apple, Microsoft, and Meta Platforms, which have collectively shown impressive returns.
As the adoption of Bitcoin by institutional investors increases due to the launch of spot Bitcoin ETFs, the iShares Bitcoin Trust could prove to be a profitable investment. This fund, with a lower fee than cryptocurrency exchanges, could benefit significantly from the anticipated rise in Bitcoin's value.
