Own VOO? Here's the Problem With Adding This Popular Growth ETF.
Pairing VOO with QQQM gives you two top performers. But is it the best idea from a portfolio construction standpoint?
Overview
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is one of the simplest and best ways to build a long-term portfolio. But what if you want to give it some more growth?
Adding the Invesco NASDAQ 100 ETF (NASDAQ: QQQM) seems like an obvious solution. It gives investors exposure to a lot of the U.S. economy's biggest tech and growth companies. And it's delivered tremendous returns over the past several years. There's just one problem: If you already own the S&P 500, you already own most of those companies in fairly sizable allocations.
Details
That doesn't necessarily mean you should eliminate QQQM from consideration. But it does mean you're making a bigger bet on a single sector than you might realize.
Source
Originally published at www.fool.com.
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