"The tech sector has been far choppier in recent weeks, and the new year might see more of the same as volatility continues working its way through parts of the tech scene. Notably, the software stocks took a hit on the chin on the first trading day of the year. And while the risks of correction are higher to start 2026, given the extended valuations, especially in the semiconductor scene, I still think the big tech leaders are worth sticking with for the long run."
"There are going to be painful plunges or perhaps even a year-long bear market to get through, but for those who recognize the long-term potential of the AI revolution, playing the long game and not giving in to fears might be a smart game plan, provided one can handle amplified volatility. In this piece, we'll check in on two tech leadership ETFs that offer far more growth than the S&P 500."
Tech stocks have become choppier recently and software shares fell sharply on the first trading day of the year. Elevated correction risk faces 2026 because of extended valuations, notably in semiconductors. Big tech leaders remain appealing for long-term investors despite the potential for painful plunges or a prolonged bear market. Long-term AI monetization could reward patient investors who can tolerate amplified volatility. Two tech leadership ETFs offer greater growth potential than the S&P 500 and may outperform if AI innovators monetize successfully. JPMorgan's JTEK launched in 2023 and has gained over 77% since inception as an active bet on U.S. tech heavyweights. The ETF's 0.65% net expense ratio may concern some investors.
Read at 24/7 Wall St.
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