Investing in Artificial Intelligence (AI) Stocks Can be Risky, but This Might be a Great Way to Do It

AI stocks have delivered strong returns but face rising volatility as investors question the sustainability of AI infrastructure spending. The iShares Future AI and Tech ETF (ARTY) offers diversified exposure to 50 leading AI companies across infrastructure, software, and services. While the ETF has surged 130% since its August 2024 restructure, investors should be cautious about concentration risk and its higher 0.47% expense ratio compared to passive index funds.