iShares Tech ETF may reach $1 million in 30 years

The Nasdaq-100 technology index recently fell by over 14% from its peak, entering correction territory. This index includes top tech companies, especially those working on artificial intelligence (AI). Investors looking for a less risky option might consider the iShares Expanded Tech Sector ETF. This fund includes 285 stocks, offering a wide range of exposure to technology, including AI. The iShares ETF has large stakes in major tech companies like Meta, Apple, Microsoft, and Nvidia. These companies are heavily investing in AI, enhancing their existing products or developing new AI solutions. For example, Meta is known for its social media platforms and also its AI models, while Apple's new software aims to improve how users interact with their devices. According to recent data, if someone invests $500 each month into the iShares ETF, it could potentially grow to $1 million over 30 years, depending on the annual returns. The ETF has shown a strong average annual return of 10.8% since 2001. Recently, this rate increased to 19.5% due to the booming AI and tech markets. Despite these potential gains, it's important to be cautious. Many tech companies may find it hard to sustain high growth rates. For example, Meta's user growth is slowing as it's reaching its limit on potential new users. Similarly, Nvidia is expected to see a significant drop in its revenue growth. Investors should keep in mind that while the iShares ETF presents promising opportunities, investing in tech stocks carries risks. They should consider including this ETF as part of a diversified investment strategy. Past performance is not always a guarantee of future success.