Related Symbol
avatar
@kewur 10 months ago

Are AI stocks in a bubble? Here’s how dividend and low-volatility ETFs could help manage risk

Are AI stocks in a bubble? Here’s how dividend and low-volatility ETFs could help manage risk

AI stocks have run up a lot, and there’s more debate about whether we’re in bubble territory like the dot-com era. The difference now is that many of these companies are actually profitable. But even if that’s true, it doesn’t mean you’re safe from a correction, especially with high valuations. For people looking for less risk, the Vanguard High Dividend Yield ETF (VYM) and Vanguard U.S. Minimum Volatility ETF (VFMV) can help diversify. VYM has 566 stocks with a 2.5% yield, barely dropped in 2022, and includes names like P&G and Walmart. VFMV focuses on low-volatility stocks like Coca-Cola and Cisco, offering some insulation in rocky markets. Both options have low fees and could be worth considering if you’re worried about an AI bubble.
post thumbnail
@Simonwhite 10 months ago

There’s always a chance unfortunately.