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According to Vettafy’s Todd Rosenbluth, Big Tech’s market dominance could drive more investors toward equal-weight exchange-traded funds.
“Investors are nervous that they have too much money concentrated in a handful of stocks within the broader ETFs available to them. [are] Tied to the S&P 500 or even nasdaq 100” the firm’s head of research told CNBC’s “ETF Edge” earlier this week.
Rosenbluth lists Invesco S&P 500 Equal Weight ETF And this Invesco S&P 500 Equal Weight Technology ETF As an alternative for investors who want to reduce investments in the “Magnificent Seven”.
“You are the owner of the same companies you will find in these S&P 500 Or in the technology sector. But instead of it being dominated by Apple and Microsoft and Nvidia, you spread that risk out to other companies,” Rosenbluth said.
Ahead of this week’s earnings from five of the Great Seven names, BNY Mellon’s Ben Slavin said flows into the group have been sluggish so far this year. Meanwhile, they also found “less preferred” market groups financial situation and parts of real estate Extortion of interest.
“In our conversations with advisors, [they’re] Are looking for somewhere else to go and are starting to panic based on [Big Tech] Valuation,” said the firm’s global head of ETFs.
CNBC’s Magnificent 7 Index, which includes Apple, Alphabet, meta, Microsoft, Amazon, NVIDIA And Tesla, rose nearly 6% on Friday. The index is up 68% over the past 52 weeks.
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