"One ETF might be super heavy in tech stocks, while another might be more focused on healthcare or financial stocks, with a number of names in the tech sector to help balance everything out. The bottom line is that with an ETF, you automatically gain ownership in hundreds of some of the most important and biggest names in the market today, without having to individually buy each stock separately."
"Ultimately, the hope is that with ETFs, you have more diversification in your portfolio, which will help you during periods of market volatility. Take SPY, for example, one of the most prominent ETFs in the market today, and it's currently returning 13.67% year-to-date. The ETF has approximately 34.73% of its holdings in tech, another 13% in financial services, 9% in healthcare, 3% in energy, and so on."
Investors can choose established ETFs such as SPY, QQQ, and VOO that have strong one-year and three-year returns. ETFs provide broad exposure to baskets of sectors and securities, enabling ownership of many major companies without buying individual stocks. Different ETFs concentrate in different sectors, such as technology, healthcare, or financials, which helps balance portfolios. ETFs offer diversification that can mitigate market volatility. SPY is returning 13.67% year-to-date and allocates roughly 34.73% to tech, 13% to financial services, 9% to healthcare, and 3% to energy. Major companies like NVIDIA, Microsoft, Apple, Tesla, and Berkshire Hathaway appear in ETF holdings.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]