Posted By By Mark Seed, myownadvisor
Special to Financial Independence Hub
Hi Passionate DIY Investors!
Welcome to a new Weekend Reading edition on the curious subject of how to play the AI game in your portfolio.
Onto the theme for this week, this article by Jon Chevreau caught my eye: AI for conservative investors
Within the article, there are a few ETFs I’ve considered to adjust our portfolio for AI success long-term:
- Fund: Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ)” that ETF provides balanced diversification across the entire AI ecosystem, including hardware, software platforms, and foreign AI leaders. Top holdings frequently include giants like Nvidia, Broadcom, and Apple.
- Beyond that article you can also consider Fund: TD Global Technology Leaders Index ETF (TSX: TEC) – with a lower MER and TEC is also heavily-traded in Canadian-dollars so this is a low-cost option for global tech.
- Finally, you can stick with what I * used to own QQQ or a Canadian-listed ETF that clones it – those ETFs invest in the top-100 companies on the NASDAQ-100 index so it’s a very passive way to own tech and AI-related tech.
* I used to own QQQ but I sold all of it about a year ago now in favour of 1. portfolio simplicity and 2. Canadian-listed ETF investing. I’m better for it – since my two-fund Canadian-listed ETF solution is up about 12% combined YTD for almost 50% of my portfolio and we don’t need to worry about AI run-ups or bubbles anymore in doing so. We ride diversified returns…
(Link here if above did not work.)
Other than some non-registered transfers/contributions to our TFSAs in early 2027, I’m not sure I’m going to be changing much in our portfolio for the rest of the year. I’ll update this post too to chronicle my process in retirement.
There could be a an AI-bubble ready to pop or this could be the summer in which we all look back on and wonder how cheap some of these AI stocks really were. Hindsight will provide all the facts but instead of guessing I’ll continue with my two-fund solution along with many Canadian stocks that pay us dividends and see where we net out a few years from now. My guess is we’ll be just fine.
Do you own lots of tech in your portfolio? Any AI-specific stocks you own? Why or why not?
Here is a sample of comments that appeared on Mark’s site responding to the AI Game blog:
Don: My AI play is buying more utilities. I’ve been adding to my CPX position and buying XLU in the US. I’ve also picked up more EMA. I’m retiring shortly and have little use for big risks and that’s how I see AI. Big risk, potential big return or big problem. AI does need power and lots of it. Should give my utilities a nice bump over time. Always liked the steady Eddies.
Mark Seed: I like CPX too. Same with BIPC for AI infrastructure. Like me, Don, about 2-years prior to retirement I also had little use for big risks so I added more global XAW to our portfolio for lazy investing. Utilities should be able to take advantage of AI long-term.
Ben: Perhaps the best AI play is to simply sit this one out or limit participation till there is evidence of some form of ROI. Problem is >50% of the SP500 has AI exposure, it’s not just the Tech guys it’s also i.e. builders, utilities and the banks. It’s not just equity it is also a big chunk of the bond market. At some point someone needs to pay someone else for goods and services and return value to shareholders. So far the AI sphere has been pretty opaque there is no evidence the revenue is there to make that happen. We don’t own US stocks or Index ETF’s, it seems companies with less AI exposure are rewarded; AAPL +23% YTD, in contrast MSFT is -19%. Both GOOGL/TSLA got hammered after earnings b/c of AI. Unless you are a genius and pick the winner(s) you are not likely to make money. An index will at best break even so why bother taking on the risk if there are better/more reliable returns elsewhere.
Mark: Something like $3T (Trillion) in investments happening into AI (depending on the source you read) and with no clear outcomes, all of this seems very opaque to say the least… This is why indexing in this stuff makes sense – no clear winners and could be lots of losers too.
Zack: I use XQQ and XCHP for AI/tech exposure, larger percentage in my TFSA since that is purely for growth and a decent 5-10% in my RRIF. I don’t consider the semiconductor stocks to be in a bubble since they are selling products for a profit with a decent protective moat. They are priced to perfection and will drop if sales don’t match expectations but you have to ask yourself, will there be less tech in our life in 30 years? I would answer, “no” so having a portion of my portfolio in tech is reasonable for growth based on what I know today.
Mark: I like XQQ: a good fund and your allocation of 5-10% or so seems very measured, Zack.
Ken: Thanks Mark for your great picks on AI ETF’s like AIQ and TEC. Can’t go wrong with these as they cover broadly the entire AI stocks. I have other ETFs like XCHP and DRAM in my AI portfolio. However, the prices keep swinging wildly in recent days and weeks!!! I addition, other individual stocks which I have include Celestica, AMD and NVDA. They are the cornerstones of the AI revolution, I believe. They are transforming the tech world and change the way how we do things. However, if the AI bubbles pop, no stocks will be safe. You have to accept a high degree of volatility that comes with these stocks. No one knows for sure if the AI bubbles will pop. If so, when and how deep it will be!!!!
Mark: Good stuff, Ken. I don’t mind a bit of speculation…maybe 5-10% of the portfolio?? Is that what you have?“However, if the AI bubbles pop, no stocks will be safe.” I agree. Same with S&P 500 since it’s so concentrated in tech.
Sandra: The AI boom certainly reminds me of the dot-com era and we know what happened there! Instead of specifically targeting this, I have the S&P500 ETF which really is the same thing at this point. Add in a handful of Microsoft and Apple I bought several years ago and I’m exposed enough! (these are my last two US stocks I haven’t sold off yet). No more for me.
Mark: Yes, given S&P 500 has about 40%+ tech that’s good enough I think for most but I can appreciate some folks might wish to dabble and tinker a bit with their portfolio.
Mark Seed is a passionate DIY investor who lives in Ottawa. He invests in Canadian and U.S. dividend paying stocks and low-cost Exchange Traded Funds on his quest to own a $1 million portfolio for an early retirement. You can follow Mark’s insights and perspectives on investing, and much more, by visiting My Own Advisor. This blog originally appeared on his site on July 25, 2026 and is republished on Findependence Hub with his permission
