A new ETF for inventors scared of the U.S. stock market’s obvious flaw

  • 📰 globebusiness
  • ⏱ Reading Time:
  • 32 sec. here
  • 12 min. at publisher
  • 📊 Quality Score:
  • News: 51%
  • Publisher: 66%

Cent News

Index,Inc,Meta

A solution to a massive problem

Seven tech stocks make up nearly 30 per cent of the S&P 500 - Apple Inc., Microsoft Corp., NVIDIA Corp.Inc. Alphabet Inc. and Meta Platforms Inc. It’s all good right now because these seven stocks have helped to power big returns for the S&P 500 in recent years.

XUSC launched on July 9, so it’s too new to have any published data on its performance or management expense ratio. The management fee is posted at 0.12 per cent, which suggests a still-reasonable MER of a few ticks higher. A reader recently got in touch to ask if it makes sense from a diversification perspective to shift some money held in a traditional S&P 500 index ETF into an equal-weight version. The answer is that a partial change seems better than making a full-on move out of the traditional S&P 500. The seven tech stocks leading the S&P will eventually lose momentum, but it may take a while.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 31. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

DigitalX to List Bitcoin ETF on Australia’s Main Stock MarketDigitalX Ltd. will launch a Bitcoin exchange-traded fund on Australia’s main stock market after becoming the second asset manager to win approval for such a product from the bourse operated by ASX Ltd.
Source: BNNBloomberg - 🏆 83. / 50 Read more »