RSP - Forget the Nasdaq -- Buy This Magnificent ETF Instead
2024-05-30 05:55:00 ET
Even investors who only keep casual tabs on the stock market probably know most of its recent gains have been driven by Nasdaq -listed stocks such as Microsoft and Nvidia . Indeed, all seven of the so-called "Magnificent Seven" stocks leading the charge throughout the past few years are Nasdaq names. This dynamic makes an exchange-traded fund (ETF) like the Invesco QQQ Trust (NASDAQ: QQQ) a compelling prospect, since it's built to mirror the Nasdaq-100 index, which means it holds a sizable stake in all seven of these market-beating tickers.
However, before diving into such a pick because it's overloaded with a particular exchange's hottest listings, consider an alternative that might make more sense to step into at this time. The Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP) sidesteps almost all of the problems the Invesco QQQ Trust poses to investors right now.
An exchange-traded fund is simply a basket of stocks with at least one common characteristic.
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Forget the Nasdaq -- Buy This Magnificent ETF Instead