ETFs to Play Amid Rising AI Bubble Concerns

Concerns over a potential AI bubble have been flexing their muscles on Wall Street for quite some time now. More investors are growing anxious about the bubble and circular investing patterns in the AI space.Bridgewater founder Ray Dalio believes artificial intelligence spending is entering bubble territory, but he cautions investors against dumping their holdings for now, as quoted on CNBC.“Don’t sell just because there’s a bubble,” Dalio said Thursday on CNBC’s Squawk Box. He explained that while high valuations normally result in lower long-term returns, a bubble alone should not be the reason to exit now. He added that something specific must trigger the burst, and that catalyst hasn’t hit the market yet.NVIDIA’s Surge Fuels Market OptimismAI leader NVIDIA jumped more than 5% after posting strong earnings and upbeat guidance on Nov. 19, 2025 after the market closed. CEO Jensen Huang overruled bubble fears, insisting the company sees a different trajectory for AI growth. However, NVIDIA lost 3.2% in the following trading session on Nov. 20, 2025.What Could Lead to the Bubble Bursting?Dalio said it likely won’t be tighter monetary policy. Instead, he pointed to the possibility of higher wealth taxes as a likely risk that could pop the bubble, as mentioned in the above-said CNBC article.Hedging MattersDalio urged investors to broaden their portfolios, noting that gold remains a strong hedge. The metal has hit record highs this year, thanks to its safe-haven status. SPDR Gold Trust GLD is up 52.7% so far this year and has lost about 0.6% over the past one month.The S&P 500 is also not fully immune to the tech bubble fears. The S&P 500 is increasingly shaped by the performance of Big Tech. With about one-fourth of the S&P 500 allocated to information technology, broader U.S. market investors are not fully proofed against tech bubble concerns.ETFs to TapAgainst this backdrop, below we highlight a few exchange-traded funds (ETFs) that could help investors’ portfolio if any tech-related risks are present.Cambria Tail Risk ETF TAILThe Cambria Tail Risk ETF seeks to mitigate significant downside market risk. The Fund intends to invest in a portfolio of out of the money put options purchased on the U.S. stock market. The fund charges 59 bps in fees and yields 2.48% annually.AdvisorShares Ranger Equity Bear ETF HDGEThe AdvisorShares Ranger Equity Bear ETF seeks capital appreciation through short sales of domestically traded equity securities. The fund charges 380 bps in fees and yields 7.25% annually.Invesco Global ex-US High Yield Corporate Bond ETF PGHYThe underlying ICE USD Global High Yield Excluding US Issuers Constrained Index comprises U.S. dollar-denominated below-investment-grade corporate debt publicly issued in the U.S. domestic and euro bond markets by non-U.S. issuers. The fund charges 35 bps in fees and yields 6.63% annually.Health Care Select Sector SPDR ETF XLVThe healthcare sector is as a safe sector and should perform well in a high-risk environment. The underlying Health Care Select Sector Index includes companies from the following industries: pharmaceuticals; health care providers & services; health care equipment & supplies; biotechnology; life sciences tools & services; and health care technology. The fund charges 8 bps in fees and yields 1.60% annually.Boost Your Portfolio with Our Top ETF InsightsZacks' 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 >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Gold Shares (GLD): ETF Research Reports Health Care Select Sector SPDR ETF (XLV): ETF Research Reports AdvisorShares Ranger Equity Bear ETF (HDGE): ETF Research Reports Invesco Global ex-US High Yield Corporate Bond ETF (PGHY): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks