Worried That the S&P 500 Leans Too Much on Big Tech? This ETF Is a Better Buy.
There's arguably no more important index in the stock market than the S&P 500. Tracking the largest 500 U.S. companies on the market, it has become the market barometer to monitor, reflecting the overall health and performance of the U.S. economy.Historically, the S&P 500 has done a great job of giving a snapshot of the U.S. economy because the companies it tracked were more evenly distributed across sectors. However, the index has recently become heavily skewed toward information technology because of skyrocketing tech valuations.With the tech sector making up roughly a third of the S&P 500, many investors (including myself) are beginning to worry that the index is too heavily influenced by big tech stocks. So if you'd like to invest in the S&P 500 while avoiding the high-tech concentration of the standard index, the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP) could be a great go-to fund.Continue reading
There's arguably no more important index in the stock market than the S&P 500. Tracking the largest 500 U.S. companies on the market, it has become the market barometer to monitor, reflecting the overall health and performance of the U.S. economy.
Historically, the S&P 500 has done a great job of giving a snapshot of the U.S. economy because the companies it tracked were more evenly distributed across sectors. However, the index has recently become heavily skewed toward information technology because of skyrocketing tech valuations.
With the tech sector making up roughly a third of the S&P 500, many investors (including myself) are beginning to worry that the index is too heavily influenced by big tech stocks. So if you'd like to invest in the S&P 500 while avoiding the high-tech concentration of the standard index, the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP) could be a great go-to fund.
