The Stock Market's Biggest Companies Are Losing Their Grip. Here's the ETF I'd Buy If History Repeats.
As the market rotates away from large-cap stocks, new opportunities have emerged in their place.
Overview
For the past few years, investors could hardly go wrong simply putting their money into the economy's biggest companies. The Magnificent Seven stocks -- Nvidia, Microsoft, Apple, Amazon, Meta Platforms, Alphabet, and Tesla -- were almost single-handedly pulling the S&P 500 higher, and investors consistently chased them.
This year has been a different story. The Roundhill Magnificent Seven ETF is up 6% year to date, but it trails the 12% return of the Vanguard S&P 500 ETF and the 27% return of the Vanguard Information Technology ETF.
Details
I see two factors in particular having changed this year.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.