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The Zacks Analyst Blog Highlights XLK, XSW, CQQQ and BOTZ
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For Immediate Release
Chicago, IL – October 27, 2025 – Zacks.com announces the list of ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Technology Select Sector SPDR ETF (XLK - Free Report) , SPDR S&P Software & Services ETF (XSW - Free Report) , Invesco China Technology ETF (CQQQ - Free Report) and Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Fearing an AI Bubble? Rotate to Other AI-Fueled Tech Areas
Bubble fears in the artificial intelligence (AI) space have been doing the rounds for quite some time now. To add to the woes, a record number of global fund managers now believe that AI stocks are truly in bubble territory, according to Bank of America’s October survey, per Bloomberg, as quoted on Yahoo Finance.
Driven by enthusiasm around AI spending and productivity gains, U.S. stocks have hit multiple records this year. The tech-heavy Nasdaq 100 has been trading at a forward price-to-earnings ratio that is well above the decade average (read: Big Tech Keeps Spending Despite Rising AI Bubble Fears: ETFs in Focus).
Mixed Views on Tech Bubble Risk
While some market participants are growing wary, strategists at Goldman Sachs argue that it is premature to fear a full-blown tech bubble. Fears of a bubble in high-flying U.S. tech stocks may be premature, at least according to Goldman Sachs strategist Peter Oppenheimer, who believes that strong earnings, not speculation, are aiding the current rally, per Bloomberg, as quoted on Yahoo Finance.
Francesco Sandrini — multi-asset head and Italy CIO at Amundi, Europe’s largest asset manager — sees irrational excitement across Wall Street, related to risky AI investments. However, he still believes that the AI rally still has legs and returns can be reaped from selective bets that are reasonably valued, per a Reuters article, as quoted on Yahoo Finance.
Dot-Com Era Insights for Today’s Market
Some investors plan to trim exposure to Wall Street’s Magnificent Seven after Nvidia’s massive rally in the last two years, while maintaining diversified exposure to the broader AI ecosystem, the Reuters article went on to highlight.
Per the same Reuters article, research by economists Markus Brunnermeier and Stefan Nagel found that hedge funds mostly did not short the dot-com bubble. Instead, they smartly rotated between tech industries, beating the market by about 4.5% per quarter from 1998 to 2000, and escaped the worst of the dotcom crash.
Which Tech ETF Areas to Tap Now
Amundi’s Sandrini looks for “the highest growth opportunities that the market has yet to spot,” citing software firms, robotics and Asian tech stocks as areas with room to run, per the same Reuters article, as quoted on Yahoo Finance.
Against this backdrop, below we highlight a few tech ETF areas that can be tapped now if you fear an immediate AI bubble burst. Each of these ETFs trades at a lower P/E multiple than that of Technology Select Sector SPDR ETF (i.e., 44.05X).
The fast and vast adoption of AI in every sector opens up immense opportunities for AI software companies to develop customized solutions. Unlike AI hardware, which is mainly a one-time sale (as quoted on Forbes), meaning demand would wane at some point in time, AI software is sold on a subscription basis. This indicates that AI software will always remain in demand. The ETF has a P/E of 39.45, per WSJ.
China Technology – Invesco China Technology ETF
China has been investing heavily in AI and the overall tech sector to create a brand for itself in the global market. Meanwhile, the Chinese economy has been slowing, which may compel the central bank to ease the monetary policy. If China cuts rates ahead, high-growth tech stocks and ETFs may gain. The ETF trades at a P/E multiple of 37.78, per WSJ.
Robotics – Global X Robotics & Artificial Intelligence ETF
AI stocks boost robotics companies as surging demand for automation drives investment in hardware, sensors and machine-learning integration. Hardware companies supply the tools that are necessary for real-world AI applications. The ETF has a P/E of 38.81, per WSJ.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights XLK, XSW, CQQQ and BOTZ
For Immediate Release
Chicago, IL – October 27, 2025 – Zacks.com announces the list of ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Technology Select Sector SPDR ETF (XLK - Free Report) , SPDR S&P Software & Services ETF (XSW - Free Report) , Invesco China Technology ETF (CQQQ - Free Report) and Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Fearing an AI Bubble? Rotate to Other AI-Fueled Tech Areas
Bubble fears in the artificial intelligence (AI) space have been doing the rounds for quite some time now. To add to the woes, a record number of global fund managers now believe that AI stocks are truly in bubble territory, according to Bank of America’s October survey, per Bloomberg, as quoted on Yahoo Finance.
Driven by enthusiasm around AI spending and productivity gains, U.S. stocks have hit multiple records this year. The tech-heavy Nasdaq 100 has been trading at a forward price-to-earnings ratio that is well above the decade average (read: Big Tech Keeps Spending Despite Rising AI Bubble Fears: ETFs in Focus).
Mixed Views on Tech Bubble Risk
While some market participants are growing wary, strategists at Goldman Sachs argue that it is premature to fear a full-blown tech bubble. Fears of a bubble in high-flying U.S. tech stocks may be premature, at least according to Goldman Sachs strategist Peter Oppenheimer, who believes that strong earnings, not speculation, are aiding the current rally, per Bloomberg, as quoted on Yahoo Finance.
Francesco Sandrini — multi-asset head and Italy CIO at Amundi, Europe’s largest asset manager — sees irrational excitement across Wall Street, related to risky AI investments. However, he still believes that the AI rally still has legs and returns can be reaped from selective bets that are reasonably valued, per a Reuters article, as quoted on Yahoo Finance.
Dot-Com Era Insights for Today’s Market
Some investors plan to trim exposure to Wall Street’s Magnificent Seven after Nvidia’s massive rally in the last two years, while maintaining diversified exposure to the broader AI ecosystem, the Reuters article went on to highlight.
Per the same Reuters article, research by economists Markus Brunnermeier and Stefan Nagel found that hedge funds mostly did not short the dot-com bubble. Instead, they smartly rotated between tech industries, beating the market by about 4.5% per quarter from 1998 to 2000, and escaped the worst of the dotcom crash.
Which Tech ETF Areas to Tap Now
Amundi’s Sandrini looks for “the highest growth opportunities that the market has yet to spot,” citing software firms, robotics and Asian tech stocks as areas with room to run, per the same Reuters article, as quoted on Yahoo Finance.
Against this backdrop, below we highlight a few tech ETF areas that can be tapped now if you fear an immediate AI bubble burst. Each of these ETFs trades at a lower P/E multiple than that of Technology Select Sector SPDR ETF (i.e., 44.05X).
Software – SPDR S&P Software & Services ETF– Zacks Rank #1 (Strong Buy)
The fast and vast adoption of AI in every sector opens up immense opportunities for AI software companies to develop customized solutions. Unlike AI hardware, which is mainly a one-time sale (as quoted on Forbes), meaning demand would wane at some point in time, AI software is sold on a subscription basis. This indicates that AI software will always remain in demand. The ETF has a P/E of 39.45, per WSJ.
China Technology – Invesco China Technology ETF
China has been investing heavily in AI and the overall tech sector to create a brand for itself in the global market. Meanwhile, the Chinese economy has been slowing, which may compel the central bank to ease the monetary policy. If China cuts rates ahead, high-growth tech stocks and ETFs may gain. The ETF trades at a P/E multiple of 37.78, per WSJ.
Robotics – Global X Robotics & Artificial Intelligence ETF
AI stocks boost robotics companies as surging demand for automation drives investment in hardware, sensors and machine-learning integration. Hardware companies supply the tools that are necessary for real-world AI applications. The ETF has a P/E of 38.81, per WSJ.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>
Zacks Investment Research
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support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.