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AI stocks have powered much of the market's excitement over the past two years. But with volatility picking up again, even long-term investors are asking the same question: What else is worth owning right now?
Below are five sensible alternatives for U.S. investors who want to reduce concentrated risk and build a more resilient portfolio. These options leverage sector investing strategies and diversification to potentially lower standard deviation and improve risk-adjusted returns.
Traditional S&P 500 funds lean heavily on a small number of tech giants, meaning your portfolio may be more dependent on a handful of companies than you realize. Equal-weight ETFs—such as the Invesco S&P 500 Equal Weight ETF (RSP)—give each of the 500 stocks the same proportional weight, offering an alternative to the standard market cap weighting approach.3 This equal weight S&P strategy can help mitigate concentration risk in mega-cap stocks.
Why the 8FIGURES AI Advisor considers this attractive:
Equal weighting in the S&P 500 naturally limits concentration risk and forces periodic rebalancing, pushing investors toward undervalued names and away from overheated mega-caps. This approach can potentially lead to improved earnings growth across the portfolio.
A reliable defensive anchor during market turbulence, healthcare stocks and healthcare ETFs offer attractive investment opportunities. The healthcare sector tends to be less sensitive to the economic cycle. From pharmaceutical companies to insurers to biotech innovators, the sector offers consistent demand and often resilient cash flows.
Why it's attractive now:
Historically, the sector has outperformed during uncertain or stagflationary periods. Health care equipment and managed healthcare companies remain relatively steady even in economic slowdowns. Some of the best healthcare ETFs, such as those in the iShares Core series, provide exposure to this defensive sector while offering diversification benefits.
Healthcare won't offer the same upside as high-flyer growth stocks, but it can add stability, dividend yield, and diversification to a portfolio that may be overly skewed toward volatile sectors. The sector's defensive characteristics make it an appealing choice for investors looking to balance their portfolios.
Factors driving growth in the healthcare sector include:
Investors should be aware of potential risks such as FDA regulation, patent disputes, and potential Medicaid cuts. However, the long-term outlook for healthcare remains positive due to ongoing demographic shifts and technological advancements.1
When U.S. stocks are richly valued, venturing overseas through foreign stock ETFs can open up value and diversification opportunities in international equity markets. A well-designed foreign stock strategy can help investors access growth potential in developed international markets and emerging economies.
Takeaway: International markets, including both developed markets and emerging markets, bring added currency, political risk, and economic exposures—but also a chance to access growth and valuations different from the U.S. scene. Investors may want to consider ETFs tracking the MSCI IMI (Investable Market Index) for broad international exposure.
When investing internationally, it's important to consider currency hedging strategies to manage foreign exchange risk. Additionally, analyzing historical return data can help set realistic expectations for performance in different market environments.
Amid volatility, companies built on subscription models (software-as-a-service, cloud tools) may behave differently than high-beta AI plays.
Takeaway: Rather than betting on the next AI breakout, consider companies with more predictable business models. They may ride out turbulence better while still offering growth potential. Analyze EPS growth expectations for these companies to gauge their future prospects.
The classic hedge is having a modern moment.
Gold recently hit new all-time highs as investors sought protection from inflation, rate uncertainty, and geopolitical risk.2 Gold-backed ETFs and mining stocks have surged in response. When evaluating gold ETFs, look for those with a strong gold rating from reputable sources.
Why the 8FIGURES AI Advisor includes it:
Gold remains one of the few assets consistently uncorrelated with equities, providing valuable protection when markets turn choppy.
Takeaway: Gold may not pay dividends, but as a non-correlated asset it can act as ballast in turbulent markets. It's a meaningful option if you believe risks (inflation, central-bank policy, global tensions) are skewed to the upside.
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These five ideas aren't about abandoning AI, they're about building a diversified portfolio that doesn't depend entirely on one theme. Here's how you might think about blending these ideas as part of your investment strategy:
When implementing this strategy, pay attention to the assets under management of the ETFs you choose, as this can impact liquidity and tracking error. Also, consider the ETF database category to ensure you're selecting funds that align with your investment goals.
For biotech equities and other specialized sectors, it may be worth consulting with institutional investors or financial advisors who have expertise in these areas. They can provide insights on product liability risks, potential patent disputes, and other sector-specific concerns.
If you want an exact, personalized list of the best non-AI assets that fit your risk tolerance, goals, and portfolio structure, you can simply ask the 8FIGURES AI Investment Advisor. It analyzes market conditions, analyzes your portfolio and risk tolerance in real time, and produces tailored investment ideas to help you achieve optimal investment results.
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Managing your investments has never been easier!
