in 2024 if you had an average 401K of $127,000 and if you invested that in the S&P 500 with a 23% return you'd have an ending balance of just over $156,000 but if you had invested into the top AI ETFs from today's video they average a 38% return which would have given you over $175,000 or nearly a $20,000 Improvement and that's why I'll be covering the top six AI ETF to blow up your portfolio and by blow up well I mean blow up it's Street job and if you're curious if AI has any more room to grow well it's estimated that for the next 8 years AI will have an annual growth of 36% a year and to give you a little context if you had invested $100,000 for 8 years with a 36% compounding annual growth rate you'd have over $117 million that means that if you're lucky enough to have the average 401k of1 $27,000 today there's a good chance that in 8 years you'll be a millionaire and now that I've got your attention and I often show this chart listing out the road map of expected AI growth where the gold signifies semiconductors like Nvidia which has seen tremendous growth the past 2 years then we have the green area for infrastructure which could include the data centers and the source of power for those groups which is just now picking up and the last section to truly take off is the software and services area my goal is to pick a list of ETFs where they aren't complete overlaps with one another but I also want to list out the most popular choices available and no I am not recommending a person have all six of these ETFs but you'll want to do a little bit of research on your own to find a good fit that doesn't overlap too much with what you already have in your portfolio that's why I also have a spreadsheet down in the description with pretty much all of the AI ETF that are available and at the end of the video I share how much each of these funds overlap within their Holdings so you may want to stick around for that and keeping with my normal flow here's the listing of all the ETFs that I'll be reviewing today so you don't feel like I'm holding you hostage and I get that there are a lot of you out there that is going to ditch the video right about now but you may notice that there are a few ETFs that you're not familiar with and for those of you that stick around to see why these are my top picks I hope that I earn a like And subscribe the first AI ETF on my list is the vanx semiconductor ETF with the symbol SMH and if you've watched my channel you'll know that this has been a top pick for me for the past 3 years because when you look at the Holdings it dominates with nearly 20% weight with Nvidia which has a demanding lead in data center GPU market share at 92% where their Blackwell chips are booked out at full capacity for all of 2025 which means that Nvidia will have another Stellar year so long as they don't have any supply chain or design issues and analysts project Nvidia to have over 23% of upside for the next year but if we look at other top Holdings from the SMH fund for the forecast we have Taiwan semiconductor up 12% asml up 24% and AMD forecasted up 48% and when we look at the funds basic info it has a lot of trading volume at 1. 6 million which gives us liquidity and the expense ratio is decent at a 0. 35% and the fund doesn't have a lot of diversity with only 26 Holdings but I'm okay with that since these are all of the top performing semiconductor companies which definitely shows in the performance with the one year at 39% threeyear is over 177% and the total compounding annual growth at 5 years is over 29% that means that it had an average annual return of 29% a year for all 5 years and analysts project theh fund to have 20% upside for the next 12 months the cool part about AI is that it has benefits into other areas like biotechnology where it's expected to have a 9-year ker of nearly 20% a year which brings me to today's sponsor biostem Technologies with the ticker symbol bem which is up over 145% the past year and has a solid pte ratio of a 24 for background biostem technology Inc is a leading innovator in regenerative therapies using perinatal tissue allographs the company manufactures allographs focusing on diabetic wound care and surgical wound care markets biostem has developed a proprietary processing method bior retain which preserves tissue structure and maintains growth factor for Superior healing and Zach's small cap research has set a price target of 3250 for BM citing its impressive growth and solid management biostem is actively working to reshape the future of Medicine with its innovative regenerative therapies and it is well positioned for continued success if you're interested in learning more then please check out the link down in the description now we will move right on to the next fund of the Defiance Quantum ETF with the symbol qtum and I realized that this fund is specific to Quantum Computing and the reason that I included it is because a lot of the companies in the Holdings well they happen to be important for AI today and I hope that many of you realize that Quantum Computing will reshape all of AI at some point I've been talking about Quantum Computing for over a year and it's just now starting to take off where if you look at the Holdings it has top players in the space like dawave retti and also some AI companies that you may be more familiar with like paler and Taiwan semiconductor and something I want to show is how the inflows or the number of people that are buying this fund has truly started to Skyrocket the past few months and I believe that Quantum is just now starting to build up its momentum ever since Google announced their Willow chipset and how they're reducing the quantum error rates people have been a lot more interested in Quantum Computing and when we look at the Fun Basics the expense ratio is reasonable at 0.
4% the volume well it happens to be a little lower than the previous one but still really good at 333,000 and moving to the performance it has been great at over 52% for the trailing 12 months 15% at 3 years and over 23% ker at the 5e and analysts have the projections a little bit low in my opinion at 12% upside for the next 12 months and another opinion of mine is that this is a sleeper fund where I can easily see the analyst being a little bit wrong with their forecast and this fund having a little bit more Runway than expected our next fund is the Invesco Nas D 100 ETF with the symbol QQQ M and if you aren't familiar this is the near identical fund as QQQ but with a little bit of a lower fee tied to it I'm not going to cover much with the Holdings because this is a fund that I believe most everyone should already have in your portfolio to hit your growth sector it has the top 100 NASDAQ companies there isn't really much more to say the expense ratio is wicked low at 0. 15% and the volume is over 1 million for great liquidity the total 12 month return is over 25% threeyear dipped a little bit at 9. 45% and the 5year is over 15% this performs very similar to the S&P 500 Index but with just a slight lead in performance and analysts give this a solid 133% upside for the next 12 months like I said I I don't have a lot much more to share on this one as it is pretty much the Baseline for having an any portfolio the next fund is the verus Reeves utilities ETF with the symbol Utes and I know that this fund is going to catch a lot of you off guard because this is a fund dedicated to utility companies where it is the PowerHouse of nuclear power plant owners which is exactly what all of these new data centers need in order to have consistent power with no emissions and when we look at the inflows to this fund people have been snatching it up for the past 3 months and it's going to continue to have strong growth along with AI now I will say that I'm a bit surprised at how this fund has one of the higher expense ratios at 0.
49% and the volume is low at 50,000 but this is also one of the few with a high dividend ratio at 1. 2% and the beta is below a one meaning that it has much less volatility than the market and when we look at the performance it had a great year at over 45% return and the three and the 5-year total returns are also very respectable and analysts have this fund with the lowest upside for the year at just over 8% I certainly can't argue with the analysts but when I was speaking to nuclear stock over a year ago the analyst had those forecasts pretty conservative at that time too as demand for electricity grows from Ai and data centers there isn't enough cheap power available so the costs will go up and all these power companies will see a boost in their profits the next fund is the Vanguard it Index Fund with the symbol vgt which also happens to be one of my favorite growth funds where it has a lot more diversity than the other funds with over 350 Holdings but the Holdings are all top companies that you'd expect to ride the AI wave from a semiconductor and software Services front which speaks to the growth cycle I mentioned at the very beginning sadly it doesn't have much weight in some of the top growing companies like pal Ander but the growth is consistent and in looking at the basic info this is the lowest expense ratio fund at 0. 1% and the volume is pretty good at 170,000 and it has a dividend of 0.
59% and the performance for vgt is solid at 28% for the year and the 3-year and the 5-year total Kar well they're some of the best and the forecast for vgt is at just over 15% for the next 12 months and is the second highest of today's picks and the next fund is the I shares US tech Independence focused ETF with a symbol ietc where the top Holdings have obvious overlaps But it includes a few one-offs like Accenture Salesforce and Oracle within their top 10 and in looking at the basics the volume is the lowest at just over 10,000 but the expense ratio is one of the lowest at a 0. 18% with a semi- low dividend at 0.