A small number of AI-focused tech stocks dominated in 2025, helping to send the S&P 500 up more than 16% for the year but leaving investors potentially exposed to undue risk in the process. Concerns about an AI bubble—and the potentially devastating impact of a continued war in Iran and oil market disturbances on the data center space—may make investors worry about possible overweighting of this industry in their broader market investments.
One way to mitigate this automatic focus on AI and tech is through exchange-traded funds (ETFs) with an equal-weight strategy. By offering similar weightings to each component of a targeted index, these funds reduce the impact of overconcentration while boosting investor access to often-overlooked companies, particularly those with smaller market capitalizations. The funds below are worth considering for investors tired of broad-based ETFs that may provide more exposure to certain corners of the market than they would like.
