Listen up, folks! Big Tech’s market dominance is giving some investors the heebie-jeebies. They’re starting to feel like all their money is tied up in just a few stocksSponsored Product within the broader ETFs that they have available (that are linked to the S&P 500 or even Nasdaq 100). This little nugget of wisdom came straight from Todd Rosenbluth, VettaFi’s head honcho of research.
Now you might be thinking, “But what can we do about it?” Well, don’t fret because our man Rosenbluth has an answer for you. He suggests looking into Invesco S&P 500 Equal Weight ETF and Invesco S&P 500 Equal Weight Technology ETF if you want to give those ‘Magnificent Seven’ tech giants a wide berth.
“You’re still investing in the same companies as before,” says Rosenbluth, “but instead of putting all your eggs in one basket with Apple and Microsoft and Nvidia, you spread that risk around like butter on toast.”
Ben Slavin from BNY Mellon also chimed in this week ahead of earnings reports from five out of seven members of this so-called Magnificent Seven. Apparently these big guns haven’t been getting much love recently; investors’ attention seems to be wandering over towards less popular market groups such as financials and real estate sectors.
“Investors are getting twitchy, looking for somewhere else to park their money due to those towering Big Tech valuations,” Slavin noted. And who can blame them? It’s like being at a party where everyone is hanging around the same few people – sometimes you want to mingle with the wallflowers too.
Now if you’re wondering who these ‘Magnificent Seven’ are, allow me to enlighten you. They’re none other than Apple, Alphabet (Google’s parent company), Meta (formerly Facebook), Microsoft, Amazon, Nvidia and Tesla. These tech titans have formed what CNBC calls its Magnificent 7 Index which had an impressive little rally recently with a nearly 6% increase in one day! Over the past year alone this index has shot up by 68%. Talk about going from zero to hero!
Disclaimer: Always remember folks, investing isn’t a sure thing and it’s always crucial that you do your own research or consult with financial advisors before making any big decisions. This article is purely for entertainment purposes and should not be taken as financial advice.
These ETFs could help investors reduce Big Tech exposure