The last couple of years will come to be known as the artificial intelligence (AI) boom period. We’ve seen it in technological development. We’ve seen it in tech stock share prices. And most recently, we’ve seen it in Space Exploration Technology Corp., or SpaceX, the largest initial public offering (IPO) in history.
SpaceX isn’t the only mega-IPO we’ll see. Anthropic and OpenAI are likely to go public later this year and become trillion-dollar companies themselves.
While this creates significant investor enthusiasm, it also poses risks to portfolios.
Image source: Getty Images.
The major indexes, such as the S&P 500 (^GSPC +1.08%), are already heavily tilted toward tech. The Vanguard S&P 500 ETF (VOO +1.16%) currently has 39% of its assets dedicated to the sector. The Vanguard Total Stock Market ETF (VTI +1.28%) has even more tech exposure, at 42% of assets.
Even if you’re just…
