Beyond the AI Frenzy: Josh Brown's Smart Play for a Broadening Market

For what feels like ages now, the investment world has been utterly captivated by artificial intelligence. And, let's be honest, who can blame us? The 'Magnificent 7' tech giants have certainly delivered some incredible returns, making the AI trade the undisputed champion for quite some time. But what happens when the market starts to stretch its legs a bit, when other sectors begin to show real muscle? That's precisely the shift that Ritholtz Wealth Management CEO Josh Brown is keenly observing, and he's got a specific ETF in mind to help investors navigate this evolving landscape.

Brown, a voice many of us trust in the financial community, recently highlighted the SPDR S&P Kensho New Economies Composite ETF, ticker symbol KOMP, as his top pick for playing this 'broadening out' of the market. His argument is pretty straightforward: while the AI story is far from over, we're starting to see genuine strength bubbling up in other corners of the economy. Think energy, financials, industrials, and even those often-overlooked small-cap companies. It's a healthy sign, frankly, when market leadership isn't solely concentrated in a handful of mega-cap tech stocks.

So, why KOMP? Well, it's not your average tech-heavy fund, and that's precisely the point. This ETF is designed to track a diverse collection of innovative companies across 24 different 'new economy' industries. We're talking about sectors that are really shaping the future: things like genetic engineering, cybersecurity, clean energy, space exploration, and even drone technology. It's a fascinating mix, allowing investors to gain exposure to forward-thinking businesses without being overly reliant on just a few AI darlings.

Brown emphasizes that this isn't about abandoning your existing tech holdings. Not at all. It's about smart diversification, recognizing that a truly robust market needs more than one engine driving it forward. As he puts it, KOMP offers a 'backdoor' entry into these emerging, high-growth areas that aren't necessarily tied directly to the AI theme. It's a way to participate in the next wave of innovation, whatever form it might take, and to spread your bets a little wider.

Consider its performance: while the Magnificent 7 have seen stellar returns, KOMP has also demonstrated solid growth, and crucially, it offers a different kind of exposure. It's about capturing that wider net of companies that are disrupting traditional industries and creating entirely new ones. This means you're not just riding the coattails of yesterday's winners but positioning your portfolio to benefit from a more distributed, innovative future. In essence, it’s about acknowledging that the market's strength is, thankfully, becoming much more widespread, and having an intelligent way to tap into that exciting, expanding opportunity.