In some ways, the much larger S&P 500 has overtaken the Dow Jones Industrial Average as the dominant barometer for the U.S. SPDR Dow Jones Industrial Average ETF ( NYSEARCA:DIA) Overall, the Invesco QQQ Trust is a cost-effective way (0.20% expense ratio) to add the innovation of the large-cap tech stocks in the Nasdaq 100 to your portfolio. However, investor enthusiasm for tech has returned in 2023, and QQQ has soared to a 13.3% gain year-to-date. Tech stocks had a tough go of it in 2022, so it’s unsurprising that QQQ lost 32.5% last year. Meanwhile, blogger sentiment is positive, while hedge fund involvement is decreasing. The Invesco QQQ Trust has a positive ETF smart score of 8 out of 10, indicating an Outperform rating, and the consensus price target of $341.20 implies 11.5% upside from today’s prices. Like VOO, QQQ pays a dividend and currently yields 0.7%. Its top 10 holdings make up 53.2% of the fund. While QQQ is a diversified ETF with 102 holdings, it is much more concentrated than VOO. Pepsi ( NASDAQ:PEP) is the one notable non-tech stock amongst the top 10 holdings. Stocks like Microsoft, Apple, Amazon, Alphabet, NVIDIA, Meta Platforms ( NASDAQ:META), and Tesla dominate the top 10 holdings. The Nasdaq is the index that is most closely associated with the technology sector, so it is unsurprising that most of QQQ’s top holdings here are the same tech stocks that make up VOO’s top holdings. The Invesco QQQ Trust ETF, often referred to colloquially as “The Q’s,” is a massive $161 billion ETF that invests in the 100 largest non-financial companies in the Nasdaq. Ultimately, the Vanguard S&P 500 is an efficacious and cost-effective way to add exposure to the entire S&P 500 to your portfolio. However, things are looking up in 2023 as the ETF is up 8.4% year to date. Last year, VOO stock fell 18.2%, closely tracking the performance of the S&P 500. Blogger sentiment is bullish, while hedge fund involvement is decreasing. Its average analyst price target of $421.99 indicates upside of 11.3% from current levels. The Vanguard S&P 500 ETF has a favorable Smart Score of 8. VOO pays a dividend and currently yields 1.6%, which is roughly in line with the average yield of the S&P 500. Vanguard is known for its low-cost funds and ETFs, and VOO is no different, with a minuscule expense ratio of just 0.03%. The rest of the top 10 is rounded out by familiar names, including tech giants like Microsoft ( NASDAQ:MSFT), Alphabet ( NASDAQ:GOOGL), Amazon ( NASDAQ:AMZN), Tesla ( NASDAQ:TSLA), and Nvidia ( NASDAQ:NVDA), as well as large-cap stocks from other sectors like Berkshire Hathaway ( NYSE:BRK.A) ( NYSE:BRK.B), ExxonMobil ( NYSE:XOM), and UnitedHealth Group ( NYSE:UNH). The Vanguard S&P 500’s top holding is the largest stock in the S&P 500 by market cap, Apple ( NASDAQ:AAPL), which accounts for 6% of the fund. This massive ETF has $281 billion in assets under management.Īs you might expect, since it covers the entire S&P 500, VOO ETF is very diversified with 506 holdings, and VOO’s top 10 holdings only make up 24.3% of the fund, essentially mirroring the concentration of the S&P 500 itself. Investing in the Vanguard S&P 500 ETF is an effective way to gain exposure to the power of the S&P 500 as a whole. Investors can use these three ETFs to add the breadth and depth of these three indices to their portfolios. It’s sensible for all investors to have some exposure to the broader indices, and it’s a great way for new investors to start their portfolios with instant diversification. However, you can add an S&P 500 ETF to your portfolio, giving you ample diversification and exposure to the growth of hundreds of the best companies in the United States. It wouldn’t be feasible to invest in all 500 stocks of the S&P 500, for example. Over the past 10 years, the Dow, S&P 500, and NASDAQ have gained 144%, 172%, and 272%, respectively. indices would have generated significant returns over the past decade. Simply investing in these three major U.S. Investing can be complex, but it can also be very simple. Investors can harness the power of entire indices by adding ETFs focusing on the Dow Jones ( DJIA), S&P 500 ( SPX), and Nasdaq 100 ( NDX) to their portfolios.
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