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4 minutes ago
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The Nasdaq Just Reached a New All-Time High -- These ETFs Could Keep Climbing
Key Points If you're looking to beat the market, investing in top artificial intelligence (AI) stocks is a no-brainer. The Fundstrat Granny Shots U.S. Large Cap ETF offers diversified exposure to multiple investing themes, including AI. The Dan Ives Wedbush AI Revolution ETF is perfect for investors who want instant diversification across all the key players. 10 stocks we like better than Tidal Trust III - Fundstrat Granny Shots Us Large Cap ETF › The Nasdaq Composite (NASDAQINDEX: ^IXIC) recently broke through the 20,000 point level to reach new highs. Investors who feel overwhelmed about picking their own stocks shouldn't fret. The beauty of exchange-traded funds (ETFs) is that they can be used to achieve targeted exposure to almost any theme, or investment strategy, you're interested in. Investors shouldn't overthink this. There is one obvious opportunity in 2025 to beat the market -- artificial intelligence (AI). The market rally continues to be fueled by companies enabling the adoption of this technology, so focusing on top ETFs that offer adequate exposure to this opportunity is your best bet. Here are two I would buy right now. 1. Fundstrat Granny Shots U.S. Large Cap ETF Don't be fooled by the name. If you're looking for a fund that seeks to hold shares of industry leaders across emerging trends in the economy, not just AI, this fund is for you. The Fundstrat Granny Shots U.S. Large Cap ETF (NYSEMKT: GRNY) is an actively managed fund that just launched last year. The fund is led by Tom Lee, who is head of research at Fundstrat Capital. Lee previously served as JPMorgan Chase's Chief Equity Strategist from 2007 through 2014, when Lee co-founded Fundstrat Global Advisors. Since its inception in 2024, the Granny Shots ETF is up 14.9% compared to the Nasdaq's 8.4% return at the time of writing. Lee and his team use a top-down method of selecting stocks. This means they identify key themes that are breeding opportunities, such as AI or fintech, and then select the best stocks to capitalize on those themes. In addition to AI, the long-term themes reflected in the fund's stock holdings are millennials' increasing spending power, energy, cyber security, and improving economic conditions. These themes can change based on Fundstrat's research but this is what it is currently working with to select stocks for the fund. Here's a quick look at the top 10 holdings in the fund as of July 17, and their respective weightings: Robinhood Markets (3.91%) Oracle (3.55%) Advanced Micro Devices (3.40%) Nvidia (3.13%) GE Vernova (3.03%) GE Aerospace (2.85%) Palantir Technologies (2.79%) KLA Corp. (2.79%) Goldman Sachs (2.76%) Caterpillar (2.76%) One thing that might appeal to investors is that it's not going after just one trend like AI. Lee is thinking broadly about all the key trends in the economy and structuring the portfolio to profit from them. It's worth mentioning that Lee is a regular guest on CNBC, which is beneficial for investors. If you decide to invest in the fund, there are plenty of videos of Lee's interviews on YouTube or X to get insight into his strategy and thinking. The fund charges an expense ratio of 0.75%, which is typical for an actively managed ETF. This means for every $1,000 invested, you will incur an annual cost of $7.50. Since this is a relatively new ETF, investors should start with a small position and average into it over time. After all, past performance isn't a guarantee of future results. But given the fund's focus on investing in industry-leading companies that have excellent growth prospects, this is a very promising ETF to consider holding for the long term. 2. Dan Ives Wedbush AI Revolution ETF Finally, for investors who want pure exposure to AI, look no further than a fund named after the biggest AI bull on Wall Street, Dan Ives. Ives is managing director and global head of technology research at Wedbush Securities. He's been covering the tech sector for many years as an analyst. The Dan Ives Wedbush AI Revolution ETF (NYSEMKT: IVES) includes the top stocks from Ives' coverage universe to profit off this opportunity. There are 30 holdings in the fund as of July 16. Here are current top 10 holdings and their respective weightings: Nvidia (5.62%) Oracle (5.28%) Taiwan Semiconductor Manufacturing (5.20%) Broadcom (4.92%) Microsoft (4.89%) Amazon (4.72%) Advanced Micro Devices (4.71%) Meta Platforms (4.64%) Apple (4.63%) Alphabet (4.50%) Keep in mind, this fund just launched over a month ago, so it doesn't have much of a track record. But it's not difficult to tell by looking at the holdings in the fund that it is likely to perform well. It's likely to outperform the Nasdaq over the next five years, at least. The fund has already attracted $343 million in assets since June 3, which reflects Ives' reputation as an analyst and the quality of the stocks in the portfolio. The fund is not actively managed but charges an expense ratio of 0.75%. But so far, the fund is up 9.3% since inception in June, slightly outpacing the Nasdaq at the time of this writing. The Fundstrat and Wedbush ETFs are likely to outperform the market over the next five years. While they will likely be more volatile than the major market indexes given their exposure to high-growth stocks, these growth ETFs are great choices for investors looking for a hands-off way to invest in the best growth stocks out there. Do the experts think Tidal Trust III - Fundstrat Granny Shots Us Large Cap ETF is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Tidal Trust III - Fundstrat Granny Shots Us Large Cap ETF make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,055% vs. just 180% for the S&P — that is beating the market by 874.27%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* The 10 stocks that made the cut could produce monster returns in the coming years. 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 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Ballard has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Goldman Sachs Group, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, Oracle, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom, GE Aerospace, and Ge Vernova 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. The Nasdaq Just Reached a New All-Time High -- These ETFs Could Keep Climbing 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
34 minutes ago
- Yahoo
US stock futures higher after trade deals with Japan, Philippines
U.S. stock futures are higher after a rally on trade deals, but some megacap tech companies are due to report quarterly results and could swing sentiment. After the regular session market close, Google-parent Alphabet and electric vehicle giant Tesla will be the first two of the so-called Magnificent Seven to report earnings. Magnificent Seven stocks are megacap tech stocks that have a strong influence on the market. They also include Apple, Microsoft, Nvidia, Meta and Amazon. In 2024, they accounted for about one-third of the S&P 500's total market capitalization. When Tesla and Alphabet report, investors will scour their reports and comments for any signs of weakness in artificial intelligence spending or effects of tariffs to extend the rally begun by trade deals announced by President Donald Trump. The U.S. and Japan agreed to a trade deal that included Japan's investing $550 billion in the U.S. and a 15% tariff on Japanese goods entering the U.S. That includes auto tariffs, which will be lowered to 15% from the current 25%, according to reports. Additionally, Trump said the U.S. struck a trade deal with the Philippines that includes a 19% tariff on goods imported from the southeast Asian country and no tariffs on U.S. goods entering the Phillippines. The two countries will also work togther militarily, he said. Final talks with Indonesia on its trade deal are also underway, the White House said. The framework includes will no tariffs on U.S. goods, while Indonesian goods entering the U.S. will be taxed at 19%. At 6 a.m. ET, futures tied to the blue-chip Dow rose 0.50%, while broad S&P 500 futures gained 0.39% and tech-heavy Nasdaq futures added 0.18%. Before the market opens, toy maker Hasbro, AT&T, Boston Scientific and Hilton are among the companies expected to report earnings. Corporate news Texas Instruments' second-quarter results topped Wall Street estimates, but the lower range of its current quarter guidance missed. CoStar Group reported better-than-expected results for the second quarter. Cal-Maine Foods results in the company's last three months of its fiscal year beat analysts' expectations, helped by egg prices. Enphase Energy's second-quarter earnings topped anlaysts' expectations, but current-quarter revenue forecast was mostly below forecasts. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: US stock futures higher after trade deals with Japan, Philippines Sign in to access your portfolio
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34 minutes ago
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US stock market concentration risks come to fore as megacaps report earnings
By Lewis Krauskopf NEW YORK (Reuters) -Wall Street's reliance on a small number of high market-value stocks to keep momentum going for the U.S. equities bull market will be tested in coming days as major technology and growth companies report earnings. Concentration in widely followed market barometers such as the S&P 500 and Nasdaq Composite means that weakness in just a few names can have broad ramifications as the indexes hover at record highs. "When a handful of stocks dominate the market ... if you do have a period of disappointment from those stocks, you could see disproportionate impacts on your portfolio from just a handful of company-specific issues," said Michael Reynolds, vice president of investment strategy at Glenmede. Drawing attention to such top-heavy market leadership on Wednesday will be earnings results due from Google parent Alphabet and Tesla, the first of the "Magnificent Seven" megacaps to report this period. That group - which also includes Nvidia, Microsoft, Apple, Amazon and Meta Platforms - earned the "Magnificent" moniker because of their dominant business positions and huge stock gains in 2023 and 2024. Stock performance this year among the Magnificent Seven has been mixed. But they have all rebounded since April from a selloff following President Donald Trump's "Liberation Day" announcement of sweeping global tariffs. The group amounted to one-third of the weight of the S&P 500 as of Friday, due to their massive market caps, their largest combined presence since the start of the year, according to LSEG Datastream. Alphabet shares are up about 1% on the year, while shares of Elon Musk-led Tesla are down about 18%. Together, they account for over 5% of the S&P 500's weight. Other data points also indicate market concentration becoming more extreme. The top 10 weights in the S&P 500 last week hit 37.3% of the index, near the 38% level it reached in January, which had been its highest level on record, according to S&P Dow Jones Indices, citing data since 1975. These massive stocks generally have higher valuations. The top 10 stocks have an average price-to-earnings ratio of about 26 times, compared to 20 times for the rest of the S&P 500, said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. "The biggest stocks are very expensive," Shalett said. "If the biggest stocks fall the most, the index is very vulnerable." The S&P 500 technology sector recently accounted for 33.9% of the entire S&P 500's market value, the largest share since March 2000 during the height of the dot-com bubble era, according to LSEG Datastream. The S&P 500 is considered a benchmark for the stock market, but its top-heavy nature could mean investors who own funds that mirror the index are less diversified than they think. "If you are designing a portfolio, you really need to consider, OK, what are the weights there?" said Todd Sohn, ETF and technical strategist at Strategas. "It's not as diversified as it has been in the past. Then you have to consider some other means out there to keep that portfolio balanced." Nvidia, which recently became the first company to top $4 trillion in market value, had as of Tuesday a 7.83% weight in the S&P 500. That is the most a single stock has ever accounted for in the index, topping the 7.7% that Apple reached last year, according to Sohn, who looked at 45 years of data. The weight of Nvidia - a semiconductor company that has symbolized the artificial intelligence boom - is greater than five entire S&P 500 sectors out of 11 in the index, including consumer staples, which includes 38 stocks and has a 5.4% weight, and energy, a 23-company group with a total S&P 500 weighting of slightly less than 3%. Heading into the heavy part of earnings season, the S&P 500 is up over 7% this year, and becoming increasingly led by larger stocks. Since April 8, when the market hit its low point for the year following Trump's tariff announcement, the S&P 500 has gained nearly 27%. The equal-weight version of the index - which is considered a gauge of the average S&P 500 stock - has risen 21.5% in that time. Since the end of 2022, the S&P 500 has gained over 60%, more than doubling the equal-weight version's gains in that time. "When the market gets really expensive and narrow ... the market becomes more vulnerable," said Matthew Maley, chief market strategist at Miller Tabak. "So it's a big concern for me."
