These 2 ETFs Let You Invest in the S&P 500 Without Too Much of the "Magnificent Seven"
Investing in an exchange-traded fund (ETF) can be a good move for long-term investors to consider today. It's an easy way to just have a balanced position in the overall market.However, there's one problem these days. If you invest in an ETF which simply mirrors the S&P 500, you'll often find that it isn't all that balanced. The most valuable, and potentially most expensive stocks, including the "Magnificent Seven," make up a big chunk of many funds.To reduce your risk and exposure to any individual stock, you may want to consider investing in a fund which includes the stocks within the S&P 500 index but that doesn't weight them based on market capitalization. This can be a safer way to invest.Continue reading
Investing in an exchange-traded fund (ETF) can be a good move for long-term investors to consider today. It's an easy way to just have a balanced position in the overall market.
However, there's one problem these days. If you invest in an ETF which simply mirrors the S&P 500, you'll often find that it isn't all that balanced. The most valuable, and potentially most expensive stocks, including the "Magnificent Seven," make up a big chunk of many funds.
To reduce your risk and exposure to any individual stock, you may want to consider investing in a fund which includes the stocks within the S&P 500 index but that doesn't weight them based on market capitalization. This can be a safer way to invest.
