Where to invest $10,000 in February: index, gold and biotechs

On January 28, the S&P index hit the 7,000 mark for the first time, fueled by optimism around artificial intelligence and expectations of corporate results. Two days later, a 10% drop in Microsoft shares triggered a large-scale sell-off. Oninvest asked Alexei Primak, founder of the Institute of Financial and Investment Technologies, what trends await us in February and where $10000 should be invested. His choice: the technology market (S&P 500), gold ETFs, and a biotechnology fund.

Primack believes that you can't do without AI in a portfolio, and if we take an index, it is logical for it to be the S&P 500, which includes all the leading public companies driving AI development.

For example, you might look at the State Street SPDR S&P 500 ETF Trust, Primack says.

It was worth $691.97 after the close of trading on 01/30/2016, a year-to-date increase of 14.37%. Goldman Sachs strategists expect the S&P 500 to show about +12% total return in 2026, down from +18% in 2025. Goldman Sachs expects expected earnings per share (EPS) to increase by 12%.

Gold, according to Primak, should always be in the portfolio. "The only question is in what proportion," says the expert. - Usually from 5 to 20%, depending on the risk profile. Gold will protect against inflation, smooth out crises and allow to rebalance the portfolio: when it grows a lot, part of it can be sold and transferred to what has temporarily sagged".

On January 29, the spot price of gold for the first time rose above $5600 per troy ounce, having collapsed by the end of the week by 9%. Some analysts attribute the price dynamics to the geopolitical situation and the perception of corrections as opportunities to buy a protective asset, Movchan's group believes that the key factor, in particular for the growth of gold prices remain central bank purchases - from 2022 to the present day:

For the private investor, the easiest way to include gold in a portfolio remains ETFs. Here you can take a closer look at SPDR Gold Shares - the largest gold fund, which allows you to own the precious metal without the complexities of physical storage and use it exactly as Primak intends: as a protective asset and a tool for regular portfolio rebalancing. At the close of trading on Jan. 30, a share of SPDR Gold Shares was worth $444.95. Through 2025, this ETF has a total return of 63.68%, well ahead of the category average of 40.37%.

If AI is changing how we live, biotechnology will change how much we live, says expert.

The same logic applies here as with technology: you can't guess which specific company will make a breakthrough, but you can own the entire sector at once through ETFs. For example, the iShares Biotechnology ETF (IBB). They have risen steadily over the past six months, showing +$28.97 over the past six months (as of 01/30/2016), thanks in part to positive results from new clinical trials. The sector trades at more moderate multiples than the broad market after growth. In the short term, the iShares Biotechnology ETF's performance looks weaker than the market, with the fund adding 3.25% YTD, noticeably underperforming the Health category average, which is up 20.85%. Over the longer horizon, however, the picture is leveling off. Over the last 12 months, IBB has shown a return of 27.06% against the average of 20.85%.

A $10,000 portfolio for a beginning investor might look like this: $6,000 on the S&P 500, $2,500 on biotech and $1,500 on gold, and rebalancing once a year.

Does not constitute an investment recommendation

This article was AI-translated and verified by a human editor