USSTOCK.TODAY
Weekend. Closed
Log in Sign up

High concentration in the US stock market and portfolio diversification issues

The Motley Fool +1 ·

VGT
VGT Vanguard Information Technology ETF
$127.98 +0.57%
View chart & analysis →
VOO VOO +0.61%VUG VUG +0.72%
  1. 1Many investors believe that holding stocks or ETFs automatically means portfolio diversification.
  2. 2Technology stocks accounted for 38% of the Vanguard S&P 500 ETF (VOO) assets.
  3. 3Technology stocks accounted for 80% of the Vanguard Growth ETF assets.

So what's the key point?

Many people believe that buying a mix of different stocks spreads out risk. However, the Vanguard S&P 500 ETF has a 38% weight in technology stocks, meaning it is more concentrated than expected.

Source The Motley Fool +1 · View original ↗

Related 3-line summaries

Stock Market Investing, the S&P 500 Index, and Alphabet's Revenue Structure The Motley Fool +1 · 7h agoEnd of ultra-low interest rate tailwinds for US stocks and rising Treasury yields The Motley Fool +1 · yesterdayHow to Use Individual Stocks and Index Funds for New Investors Nasdaq +1 · yesterday
Today's 5 AI picks, all free
Nothing hidden: past picks and how they did against the S&P 500.
See today's picks →
← Back to news