Yahoo Finance articles point out that the smartest investors tend to avoid overvalued stock risk by investing in index-tracking ETFs.
The article analyzes that in the current bull market, many popular artificial intelligence stocks are overvalued, and experienced investors know that once a stock becomes widely known and hyped, it has often reached its peak. Therefore, their repeatedly adopted strategy is to invest in exchange-traded funds (ETTs) that track indices, such as the Vanguard S&P 500 ETF (VOO). This ETF manages $1.7 trillion in assets, has an average annualized return of 11.4% over the past 20 years, and an expense ratio of only 0.03%. Warren Buffett has also stated that the key to investing is to buy all large companies through the S&P 500 index and hold them for the long term in a low-cost manner.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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