Accumulate the iShares NASDAQ 100 ETF ($IQQ**)** as a core, long-term growth holding to cost-effectively dollar-cost average into top technology stocks with smaller capital amounts. Take advantage of the temporary fee reduction to 10 basis points through July 31, 2027, while using the lower share price to execute accessible options strategies. Mitigate single-stock risks by deploying capital into the iShares Semiconductor ETF ($SOXX**)** to gain diversified exposure to the entire semiconductor value chain driving artificial intelligence. Expand your artificial intelligence strategy beyond headline GPU makers by investing in ancillary power infrastructure and physical data centers. Consider the actively managed Active AI ETF ($BAI**)** for professional oversight to navigate shifting valuations and sector rotations across the broader AI ecosystem.

iShares NASDAQ 100 ETF (IQQ)

• Designed as a lower-cost, highly accessible vehicle to track the NASDAQ 100 index, making it easier for smaller retail investors and options traders to participate.
• Features a low fee of 12 basis points, reduced to 10 basis points through July 31, 2027.
• Created with a lower share price to allow investors with smaller amounts of capital (e.g., $25) to purchase whole shares rather than relying solely on fractional shares.
• Complements existing building blocks like QTOP (top 30 names) and QNEXT (next 70 names), which help investors manage the market concentration risks present in the top-heavy NASDAQ 100.

Takeaways

• Consider using IQQ as a core, long-term growth holding for technology exposure, particularly if you want to dollar-cost average into the NASDAQ 100 with lower entry barriers.
• Utilize the lower share price of IQQ to implement more accessible option strategies around the index if you are a sophisticated retail investor.

iShares Semiconductor ETF (SOXX)

• Provides broad, diversified exposure to U.S.-listed semiconductor companies and ADRs while capping top individual exposures around 7% to 8%.
• Offers a more balanced basket compared to other semiconductor alternatives by avoiding extreme concentration in just two or three massive names.
• Semiconductors are viewed not as a cyclical subsector, but as a foundational component driving the entire growth and adoption of artificial intelligence.

Takeaways

• Review your current semiconductor exposure to check for over-concentration in single names.
• Use SOXX as a diversified vehicle to gain exposure to the broader semiconductor value chain underpinning artificial intelligence and general economic growth.

Artificial Intelligence Theme & Active AI ETF (BAI)

• Artificial intelligence is considered a massive mega-force expected to deliver $10 trillion to $15 trillion of economic impact over the coming years.
• The AI investment opportunity extends far beyond just GPU manufacturers and hyperscalers, covering a broad value chain that includes:
  • Power infrastructure and the physical data centers required to run AI models
  • A wide chain of semiconductors, including CPUs and memory
  • Proprietary data companies utilized to train large language models
  • AI users and software applications that adopt AI as a force multiplier for their businesses
• BlackRock's actively managed BAI ETF leverages portfolio managers like Tony Kim to navigate the rapid evolution and potential bumps in the AI sector.

Takeaways

• Look beyond the headline GPU designers when investing in AI by exploring ancillary sectors such as power infrastructure, data center real estate, and enterprise software applications.
• Consider active management vehicles like BAI if you want professional oversight to navigate valuations and industry shifts across the broader AI ecosystem.

iShares MSCI South Korea ETF (EWY)

• Tracks South Korean equities, where a large portion of the index weight (over 50%) is concentrated in memory chip giants like Samsung and SK Hynix.
• Directly tied to the global demand cycle for memory chips, which has experienced intense volatility and mania driven by AI hardware demand.

Takeaways

• Exercise caution when investing in concentrated international markets heavily tied to a single commodity cycle like memory chips.
• Monitor international tech corrections as potential leading indicators for broader global market sentiment.