"We are at the beginning of an industrial revolution that will transform every industry. We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade." This is what Colette Kress, Nvidia's CFO, said on the company's earnings call for the second quarter of the company's fiscal 2026, which ended July 27, 2025.
While this is an absolutely mind-boggling number, that prediction might end up proving to be accurate. That's because there is already a massive sum of capital being invested in all things artificial intelligence. From an investing perspective, this secular trend should not be ignored, even though there is certainly a risk we're in an AI bubble right now.
But instead of trying to successfully pick individual stocks, a more diversified and all-inclusive approach might be the best move. Here's one no-brainer AI index fund that investors can buy right now for less than $500.
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A hassle-free way to own AI's most dominant companies
At $258, the Invesco Nasdaq 100 ETF (QQQM +0.12%) falls squarely under the $500 figure. This popular exchange-traded fund (ETF) tracks the performance of the 100 largest non-financial stocks that trade on the Nasdaq exchange. It's a more concentrated investment vehicle than the closely followed S&P 500 index.
The QQQM has a meaningful position in Nvidia, which represents 8.99% of the portfolio. This burgeoning enterprise is the main beneficiary of the AI infrastructure build-out. Combined, Alphabet, Microsoft, and Amazon make up 18.3% of the ETF. These are the leading cloud computing platforms, which provide customers with access to valuable AI products and services.
Apple, Meta Platforms, and Tesla also fall into the top 10 in terms of position sizing. Owning these tech-driven businesses has worked out extremely well. The QQQM has generated a total return of 99% in the past five years (as of Feb. 2). And with a low expense ratio of 0.15%, it's hard to beat.
NASDAQ: QQQM
Key Data Points
Should you wait for a pullback?
It's important that investors understand the setup today. As noted, there are concerns about how much enthusiasm surrounds the AI boom right now. Whether or not you believe that the current market environment resembles a bubble is beside the point, though. If you are bullish on AI's prospects over the long run, then investing early and often in front of this tailwind is the reasonable action to take.
This makes the Invesco Nasdaq 100 ETF a top choice for investors seeking the right exposure to these types of companies. If valuation is still a worry, then consider dollar-cost averaging over several months. This will allow you to take advantage of multiple entry points.
