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2 Artificial Intelligence (AI) ETFs to Confidently Buy Heading Into 2026

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A new year is around the corner, and artificial intelligence is likely to remain a driving force of stock market returns.

With a little over three months remaining in 2025, now might be a good time to think about making some portfolio adjustments ahead of the new year. Artificial intelligence (AI) is currently a key driver of stock market returns, and we could still be in the early innings of this tech revolution, so investors who lack exposure might want to make some moves.

Purchasing just one or two exchange-traded funds (ETFs) can be the equivalent of buying an entire portfolio of AI stocks. Here’s why the Roundhill Generative AI and Technology ETF (CHAT 1.91%) and the Vanguard Mega Cap Growth ETF (MGK 0.61%) are two great potential candidates.

Image source: Getty Images.

The case for the Roundhill Generative AI and Technology ETF

The Roundhill ETF invests in companies developing the platforms, infrastructure, and software powering the AI revolution. It holds just 38 stocks, and the fund is actively managed, which means Roundhill’s team of experts regularly adjusts the portfolio based on what they think will generate the best returns.

The top five holdings in the ETF are some of the most dominant companies in the AI industry. They have a combined portfolio weighting of 25.6%, so they heavily influence the overall performance of the ETF:

Stock

Roundhill ETF Portfolio Weighting

1. Nvidia

8.03%

2. Alphabet

5.60%

3. Meta Platforms

4.19%

4. Microsoft

4.08%

5. Oracle

3.74%

Data source: Roundhill Investments. Portfolio weightings are accurate as of Sept. 4, 2025, and are subject to change.

Nvidia supplies the most powerful data center chips for AI development. Its Blackwell Ultra architecture for graphics processing units (GPUs) is the gold standard for the latest generation of AI reasoning models, which spend time “thinking” before rendering outputs, and consume significantly more computing capacity than traditional one-shot models as a result.

Alphabet and Microsoft developed their own AI virtual assistants, and they are also two of the world’s largest providers of cloud computing services. They operate data centers filled with chips from suppliers like Nvidia, and rent the computing capacity to businesses that use it to develop AI models. Plus, Microsoft Azure and Google Cloud offer a growing number of ready-made large language models (LLMs) from leading third-party developers, which businesses can use to fast-track their AI software projects.

Oracle is another provider of cloud services, except its data centers are considered to be among the industry’s most cost-effective and most powerful for processing AI workloads. The company believes it can grow its geographic footprint at least tenfold over the long term, which could drive incredible returns for its stock.

Actively managed funds come with higher costs, so the Roundhill ETF has an expense ratio of 0.75%, which is much higher than the 0.07% charged by the Vanguard Mega Cap Growth ETF. In dollar terms, an investment of $100,000 in the Roundhill ETF would incur an annual fee of $750.

However, investors have been well compensated for the relatively high cost, because the ETF has delivered a return of 111% since it was established in May 2023, crushing the 55% return in the benchmark S&P 500 (^GSPC 0.21%) index over the same period.

The case for the Vanguard Mega Cap Growth ETF

The Vanguard Mega Cap Growth ETF is a passive fund, meaning Vanguard’s portfolio managers have limited discretion over its holdings. It’s designed to track the performance of the CRSP U.S. Mega Cap Growth Index, which invests in the top 70% of the cumulative market capitalization of the CRSP U.S. Total Market Index. The CRSP U.S. Total Market Index holds all 3,508 stocks listed on American stock exchanges.

The Vanguard ETF holds just 69 stocks, which highlights the extreme concentration of wealth in the corporate sector. To explain it a different way, just 69 companies represent 70% of the entire value of all 3,508 companies listed on U.S. stock exchanges.

It just so happens that many of America’s largest companies operate in the tech and tech-adjacent industries. In fact, the top five holdings in the Vanguard ETF are among the biggest names in the AI space.

Stock

Vanguard ETF Portfolio Weighting

1. Nvidia

14.47%

2. Microsoft

13.94%

3. Apple

10.86%

4. Amazon

7.73%

5. Broadcom

4.94%

Data source: Vanguard. Portfolio weightings are accurate as of July 31, 2025, and are subject to change.

Apple continues to roll out its Apple Intelligence software, which brings several AI features to iPhones, iPads, and Mac computers. With more than 2.35 billion active devices worldwide, Apple could eventually become the biggest AI touchpoint for consumers on the planet.

Amazon Web Services is larger than both Microsoft Azure and Google Cloud, and it’s firmly focused on AI right now. But Amazon has deployed over 1,000 AI applications across its entire organization, which spans e-commerce, digital advertising, streaming, and more.

The Vanguard ETF has delivered a compound annual return of 13.5% since its inception in 2007, comfortably outpacing the S&P 500, which has grown by an average of 10.4% per year over the same period. But thanks mainly to the proliferation of AI, the ETF has soared by almost 26% annually over the last three years.

Therefore, like the Roundhill Generative AI and Technology ETF, the Vanguard Mega Cap Growth ETF offers investors a simple way to expose their portfolio to the AI boom.

Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends Broadcom 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.



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AI takes passenger seat in Career Center with Microsoft Copilot

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By Arden Berry | Staff Writer

To increase efficiency and help students succeed, the Career Center has created artificial intelligence programs through Microsoft Copilot.

Career Center Director Amy Rylander said the program began over the summer with teams creating user guides that described how students could ethically use AI while applying for jobs.

“We started learning about prompting AI to do things, and as we began writing the guides and began putting updates in them and editing them to be in a certain way, our data person took our guides and fed them into Copilot, and we created agents,” Rylander said. “So instead of just a user’s guide, we now have agents to help students right now with three areas.”

Rylander said these three areas were resume-building, interviewing and career discovery. She also said the Career Center sent out an email last week linking the Copilot Agents for these three areas.

“Agents use AI to perform tasks by reasoning, planning and learning — using provided information to execute actions and achieve predetermined goals for the user,” the email read.

To use these Copilot Agents, Rylander said students should log in to Microsoft Office with their Baylor email, then use the provided Copilot Agent links and follow the provided prompts. For example, the Career Discovery Agent would provide a prompt to give the agent, then would ask a set of questions and suggest potential career paths.

“It’ll help you take the skills that you’re learning in your major and the skills that you’ve learned along the way and tell you some things that might work for you, and then that’ll help with the search on what you might want to look for,” Rylander said.

Career Center Assistant Vice Provost Michael Estepp said creating AI systems was a “proactive decision.”

“We’re always saying, ‘What are the things that students are looking for and need, and what can our staff do to make that happen?’” Estepp said. “Do we go AI or not? We definitely needed to, just so we were ahead of the game.”

Estepp said the AI systems would not replace the Career Center but would increase its efficiency, allowing the Career Center more time to help students in a more specialized way.

“Students want to come in, and they don’t want to meet with us 27 times,” Estepp said. “We can actually even dive deeper into the relationships because, hopefully, we can help more students, because our goal is to help 100% of students, so I think that’s one of the biggest pieces.”

However, Rylander said students should remember to use AI only as a tool, not as a replacement for their own experience.

“Use it ethically. AI does not take the place of your voice,” Rylander said. “It might spit out a bullet that says something, and I’ll say, ‘What did you mean by that?’ and get the whole story, because we want to make sure you don’t lose your voice and that you are not presenting yourself as something that you’re not.”

For the future, Rylander said the Career Center is currently working on Graduate School Planning and Career Communications Copilots. Estepp also said Baylor has a contract with LinkedIn that will help students learn to use AI for their careers.

“AI has impacted the job market so significantly that students have to have that. It’s a mandatory skill now,” Estepp said. “We’re going to start messaging out to students different certifications they can take within LinkedIn, that they can complete videos and short quizzes, and then actually be able to get certifications in different AI and large language model aspects and then put that on their resume.”



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When Cybercriminals Weaponize Artificial Intelligence at Scale

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Anthropic’s August threat intelligence report sounds like a cybersecurity novel, except it’s terrifyingly not fiction. The report describes how cybercriminals used Claude AI to orchestrate and attack 17 organizations with ransom demands exceeding $500,000. This may be the most sophisticated AI-driven attack campaign to date.

But beyond the alarming headlines lies a more fundamental swing – the emergence of “agentic cybercrime,” where AI doesn’t just assist attackers, it becomes their co-pilot, strategic advisor, and operational commander all at once. 

The End of Traditional Cybercrime Economics

The Anthropic report highlights a cruel reality that IT leaders have long feared. The economics of cybercrime have undergone significant change. What previously required teams of specialized attackers working for weeks can now be accomplished by a single individual in a matter of hours with AI assistance.

For example, the “vibe hacking” operation is detailed in the report. One cybercriminal used Claude Code to automate reconnaissance across thousands of systems, create custom malware with anti-detection capabilities, perform real-time network penetration, and analyze stolen financial data to calculate psychologically optimized ransom amounts. 

More than just following instructions, the AI made tactical decisions about which data to exfiltrate and crafted victim-specific extortion strategies that maximized psychological pressure. 

Sophisticated Attack Democratization

One of the most unnerving revelations in Anthropic’s report involves North Korean IT workers who have infiltrated Fortune 500 companies using AI to simulate technical competence they don’t have. While these attackers are unable to write basic code or communicate professionally in English, they’re successfully maintaining full-time engineering positions at major corporations thanks to AI handling everything from technical interviews to daily work deliverables. 

The report also discloses that 61 percent of the workers’ AI usage focused on frontend development, 26 percent on programming tasks, and 10 percent on interview preparation. They are essentially human proxies for AI systems, channeling hundreds of millions of dollars to North Korea’s weapons programs while their employers remain unaware. 

Similarly, the report reveals how criminals with little technical skill are developing and selling sophisticated ransomware-as-a-service packages for $400 to $1,200 on dark web forums. Features that previously required years of specialized knowledge, such as ChaCha20 encryption, anti-EDR techniques, and Windows internals exploitation, are now generated on demand with the aid of AI. 

Defense Speed Versus Attack Velocity

Traditional cybersecurity operates on human timetables, with threat detection, analysis, and response cycles measured in hours or days. AI-powered attacks, on the other hand, operate at machine speed, with reconnaissance, exploitation, and data exfiltration occurring in minutes. 

The cybercriminal highlighted in Anthropic’s report automated network scanning across thousands of endpoints, identified vulnerabilities with “high success rates,” and crossed through compromised networks faster than human defenders could respond. When initial attack vectors failed, the AI immediately generated alternative attacks, creating a dynamic adversary that adapted in real-time. 

This speed delta creates an impossible situation for traditional security operations centers (SOCs). Human analysts cannot keep up with the velocity and persistence of AI-augmented attackers operating 24/7 across multiple targets simultaneously. 

Asymmetry of Intelligence

What makes these AI-powered attacks particularly dangerous isn’t only their speed – it’s their intelligence. The criminals highlighted in the report utilized AI to analyze stolen data and develop “profit plans” by incorporating multiple monetization strategies. Claude evaluated financial records to gauge optimal ransom amounts, analyzed organizational structures to locate key decision-makers, and crafted sector-specific threats based on regulatory vulnerabilities. 

This level of strategic thinking, combined with operational execution, has created a new category of threats. These aren’t script-based armatures using predefined playbooks; they’re adaptive adversaries that learn and evolve throughout each campaign. 

The Acceleration of the Arms Race 

The current challenge is summed up as: “All of these operations were previously possible but would have required dozens of sophisticated people weeks to carry out the attack. Now all you need is to spend $1 and generate 1 million tokens.”

The asymmetry is significant. Human defenders must deal with procurement cycles, compliance requirements, and organizational approval before deploying new security technologies. Cybercriminals simply create new accounts when existing ones are blocked – a process that takes about “13 seconds.” 

But this predicament also presents an opportunity. The same AI functions being weaponized can be harnessed for defenses, and in many cases defensive AI has natural advantages. 

Attackers can move fast, but defenders have access to something criminals don’t – historical data, organizational context, and the ability to establish baseline behaviors across entire IT environments. AI defense systems can monitor thousands of endpoints simultaneously, correlate subtle anomalies across network traffic, and respond to threats faster than human attackers can ever hope to. 

Modern AI security platforms, such as the AI SOC Agent that works like an AI SOC Analyst, have proven this principle in practice. By automating alert triage, investigation, and response processes, these systems process security events at machine speed while maintaining the context and judgment that pure automation lacks. 

Defensive AI doesn’t need to be perfect; it just needs to be faster and more persistent than human attackers. When combined with human expertise for strategic oversight, this creates a formidable defensive posture for organizations. 

Building AI-Native Security Operations

The Anthropic report underscores how incremental improvements to traditional security tools won’t matter against AI-augmented adversaries. Organizations need AI-native security operations that match the scale, speed, and intelligence of modern AI attacks. 

This means leveraging AI agents that autonomously investigate suspicious activities, correlate threat intelligence across multiple sources, and respond to attacks faster than humans can. It requires SOCs that use AI for real-time threat hunting, automated incident response, and continuous vulnerability assessment. 

This new approach demands a shift from reactive to predictive security postures. AI defense systems must anticipate attack vectors, identify potential compromises before they fully manifest, and adapt defensive strategies based on emerging threat patterns. 

The Anthropic report clearly highlights that attackers don’t wait for a perfect tool. They train themselves on existing capabilities and can cause damage every day, even if the AI revolution were to stop. Organizations cannot afford to be more cautious than their adversaries. 

The AI cybersecurity arms race is already here. The question isn’t whether organizations will face AI-augmented attacks, but if they’ll be prepared when those attacks happen. 

Success demands embracing AI as a core component of security operations, not an experimental add-on. It means leveraging AI agents that operate autonomously while maintaining human oversight for strategic decisions. Most importantly, it requires matching the speed of adoption that attackers have already achieved. 

The cybercriminals highlighted in the Anthropic report represent the new threat landscape. Their success demonstrates the magnitude of the challenge and the urgency of the needed response. In this new reality, the organizations that survive and thrive will be those that adopt AI-native security operations with the same speed and determination that their adversaries have already demonstrated. 

The race is on. The question is whether defenders will move fast enough to win it.  



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UVA looking to broadly implement AI, including future investments

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CHARLOTTESVILLE, Va. (WVIR) – From research, education, and health care, The University of Virginia uses artificial intelligence in many ways.

UVA assistant psychology professor Hudson Golino says AI is expanding so rapidly, we have to make sure that large language models are being used to improve people’s lives and align with human values, which can get complicated as they become “smarter.”

“Researchers are trying to implement guardrails, to make sure that these models, that will very soon be able to learn by themselves that they keep aligned with our human values and that they can generate things that align with the interest of a specific society,” Golino said.

As AI is continuing to grow in research and in daily life, UVA is looking to make a large investment in AI soon, which will help researchers learn more.

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