Why the Invesco S&P 500 Equal Weight ETF (RSP) Might Be a Better Buy Than the Flagship Vanguard S&P 500 ETF (VOO) Right Now
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The S&P 500 is often used interchangeably with "the market," but there are important differences investors should make sure they know about.There are about 8,000 securities traded on U.S. markets, including exchange-trade funds (ETF), but the S&P 500 includes only 500 stocks. These are all U.S. companies that have a market cap of at least $22.7 billion in addition to other criteria.It's also a weighted index, which means that stocks are weighted by market cap. The larger a stock is, the more of it is represented in the index. So when the S&P 500 makes a move, it could be highly influenced by its largest components. Today, it's extremely tech-heavy.Continue readingWeiter zum vollständigen Artikel bei MotleyFool
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Quelle: MotleyFool