The Fidelity MSCI Information Technology Index ETF boasts the lowest expense ratio at 0. 08%, but I prefer the iShares Expanded Tech Sector ETF for my investment choice of $500. With an expense ratio of 0. 4%, translating to $40 annually per $10, 000 invested, it remains cost-effective while outperforming Fidelity’s option over recent years, compensating for the marginal cost difference. Notably, this year, the Expanded Tech Sector ETF exceeded the performance of other AI ETFs and the Nasdaq overall. I also prefer its diversified holding composition. Fidelity's fund has about 44% of its value tied up in its top three positions, whereas the iShares ETF allocates around 25% to its top three. Additionally, Meta Platforms (NASDAQ: META) is a prominent holding in the iShares ETF but is noticeably missing from Fidelity’s 296 equities. Meta stands out as a major AI asset in big tech, and many leading hedge funds consider it a top holding. Meta has consistently excelled in its core areas, managing four of the world's top social media platforms and reaching 3. 29 billion users daily. This broad reach enhances its advertising value, driving substantial revenue growth each quarter since Q1 2023. Meta’s AI initiatives are enhancing ad efficiency and targeting, and the success of its Meta AI platform demonstrates its capability to develop popular AI solutions—something even Apple has struggled with. I believe Meta’s enduring dedication to AI research will lead to transformative products for its business. Whether you’re investing $500 or $500, 000, supporting companies at the forefront of the AI revolution is wise. The iShares Expanded Tech Sector ETF is a simple, cost-effective option. Before rushing to invest in the iShares Expanded Tech Sector ETF with $1, 000, consider this: The Motley Fool Stock Advisor team recently spotlighted what they view as the 10 best current stock picks—and iShares wasn’t among them.

Historically, their picks have the potential for substantial returns. Take Nvidia’s inclusion on April 15, 2005. An investment of $1, 000 then would be worth $825, 513 today. * Stock Advisor offers straightforward investment strategies, ongoing updates, and monthly stock suggestions. Since 2002, its returns have quadrupled those of the S&P 500. * Explore the 10 stocks » *Results as of December 23, 2024. Randi Zuckerberg, former Facebook spokesperson and sister of Meta CEO Mark Zuckerberg, serves on The Motley Fool's board. Johnny Rice holds no stocks mentioned. The Motley Fool owns positions in and recommends Apple and Meta Platforms. Their disclosure policy is available.