The technology sector is rapidly evolving with two key AI subsectors: agentic AI, which enables machines to autonomously make decisions, and physical AI, advancing robotics with unprecedented precision. Investors face challenges in selecting individual successful companies due to the competitive and uncertain nature of these fields. A practical solution is investing in a low-cost exchange-traded fund (ETF), which mitigates company-specific risks while capturing growth. The Vanguard Information Technology ETF (VGT 1. 86%) is an excellent choice for investors looking to tap into these AI trends, offering exposure to 316 tech companies at a low expense ratio of 0. 10%. Notable holdings include tech giants like Apple, Nvidia, and Microsoft, which are heavily investing in agentic AI and robotics. The fund also emphasizes enterprise software companies, such as Salesforce and Oracle, that could leverage their platforms to distribute future AI technologies widely.

Moreover, it includes semiconductor leaders like Nvidia, Broadcom, and AMD, crucial for developing physical AI systems. These technologies have a broad potential market, spanning industries like manufacturing, healthcare, and logistics. As AI transitions from R&D to commercial use, companies involved in creating AI hardware and software are poised to benefit. Beyond consumer AI applications, the fund's diverse holdings cater to the B2B market, offering solutions across the enterprise technology stack. This positions investors to capitalize on AI adoption across various industries. Overall, the Vanguard fund presents a balanced investment opportunity, combining stability from large-cap holdings with growth prospects in AI. Its diversified approach manages risks associated with the evolving AI landscape, making it a compelling choice for forward-thinking investors.