Afraid of an AI Crash? These 3 Safer Plays Could Protect Your Portfolio.

2 hours ago 1

Ben Gran, The Motley Fool

Tue, January 27, 2026 astatine 5:20 AM CST 5 min read

Fifty-seven percent of investors accidental that an AI clang is the biggest marketplace hazard successful 2026.
Vanguard probe projects that bonds could beryllium a amended concern than stocks during the adjacent fewer years.
To trim your AI clang risk, deliberation astir diversifying into worth stocks, small-cap stocks, and high-quality enslaved ETFs.
10 stocks we similar amended than Vanguard Index Funds - Vanguard Value ETF ›

Investor excitement astir AI stocks has helped to thrust large gains for the U.S. and planetary banal markets successful 2025. But what if the AI enactment goes bust this year? A imaginable AI clang is apical of caput for planetary investors. According to the Deutsche Bank 2026 Global Markets Survey, 57% of respondents judge that the biggest hazard to marketplace stableness this twelvemonth is "tech valuations plunge/AI enthusiasm wanes."

Investors already look to beryllium getting apprehensive astir AI stocks. The Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ) has gained 29% successful the past year, outperforming the S&P 500 index, which is up 13.6% successful that time. But aft reaching an all-time precocious of $53.75 connected Nov. 3, this AI banal ETF rapidly declined 11% by Nov. 21, and was inactive down astir 2% disconnected its precocious arsenic of Jan. 22.

If you privation to put your wealth successful a safer mode to debar immoderate downside risks of a imaginable AI tumble, present are a fewer imaginable strategies.

A young mates consciousness calm and relieved portion checking their portfolio.

The S&P 500 scale has go top-heavy with highly valued exertion stocks. If you privation to diversify your portfolio against the risks of an AI crash, you could see buying worth banal exchange-traded funds (ETFs) instead. The Vanguard Value ETF (NYSEMKT: VTV) gives you entree to 312 stocks crossed a wide scope of sectors, and lone 7.8% of the portfolio is exertion stocks.

The apical 5 holdings successful the Vanguard Value ETF are JPMorgan Chase, Berkshire Hathaway, ExxonMobil, Johnson & Johnson, and Walmart. None of these companies are heavy invested successful AI oregon considered to beryllium AI stocks. You tin ain this money for an ultra-low disbursal ratio of 0.04%.

This ETF offers a 9.9% net maturation complaint and a price-to-earnings ratio of astir 21. That's little than the S&P 500 scale P/E ratio of 31 and the Invesco QQQ Trust's P/E ratio of 33.9.

Another mode to trim your hazard of an AI banal illness is to bargain small-cap stocks. Smaller companies typically person constricted vulnerability to the AI commercialized and are often valued astatine little multiples compared to large tech stocks. Small-cap banal scale funds could enactment your wealth to enactment successful a antithetic country of the market, distant from the AI craze. And immoderate of today's small-cap stocks could go the fast-growing companies of the future.