Latest news with #InvescoS&P500EqualWeightETF
Yahoo
13 hours ago
- Business
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VOO Is a Great Choice for Most, but I Like RSP ETF Better
The Vanguard S&P 500 ETF tracks the performance of the most popular stock market benchmark. It has minimal expenses and has historically been a great way to build wealth over long periods. The S&P 500 has become a little top-heavy, so I prefer an equal-weight approach. 10 stocks we like better than Invesco S&P 500 Equal Weight ETF › The Vanguard S&P 500 ETF (NYSEMKT: VOO), also known by its ticker symbol VOO, is one of the most popular funds in the world. Including Vanguard's mutual fund version of the same index fund, investors have $1.4 trillion in assets invested in it. As the name suggests, this is an index fund that tracks the benchmark S&P 500 (SNPINDEX: ^GSPC) over time. In other words, if the S&P 500 produces a 20% total return for investors over the next two years, this ETF should do the same, net of fees. Speaking of fees, as a Vanguard ETF, the investment expenses of this index fund are extremely low. It has an expense ratio of just 0.03%, which means that for every $1,000 in assets, your annual investment cost will be just $0.30, which will be reflected in the fund's performance over time. The Vanguard S&P 500 ETF is generally thought of as an excellent "core" investment for a stock portfolio. And in full disclosure, I own shares of it in my own retirement portfolio. But if I were to put new money to work today, I may choose to go in a slightly different direction and buy shares of a similar ETF that has one big difference. To be clear, the Vanguard S&P 500 ETF is a great index fund. If you're simply looking for a low-cost way to match the stock market's performance over time, it could be an excellent addition to your portfolio. My biggest issue with investing in the S&P 500 is that it has become rather top-heavy in recent years. With the emergence of trillion-dollar tech companies, the S&P 500 is weighted so that well over one-third of its performance is derived from the 10 largest components. In a nutshell, an S&P 500 index fund has increasingly become a bet on the largest few dozen U.S. companies, and has become less of a broad, diversified way of getting stock market exposure. If I were putting new money to work today, I would take a closer look at the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP). It invests in the same 500 companies you'll find in the portfolio of the Vanguard S&P 500 ETF, but with one key difference. Instead of allocating assets based on the size of each component, it invests an equal amount in all 500 companies. Of course, there are day-to-day fluctuations, but there's about 0.2% of the fund's assets invested at any given time. This means that smaller components of the S&P 500 like Dollar General carry the same weight as megacaps like Microsoft. The equal-weight fund does have a somewhat higher 0.20% expense ratio, but this is still on the lower end for a unique ETF. As mentioned, there's absolutely nothing wrong with a traditional S&P 500 index fund. But if you're not too much of a fan of having your investment's performance largely dependent on just a few companies, this equal-weight counterpart could be worth a closer look. Before you buy stock in Invesco S&P 500 Equal Weight ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco S&P 500 Equal Weight ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Matt Frankel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Microsoft and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. VOO Is a Great Choice for Most, but I Like RSP ETF Better was originally published by The Motley Fool
Yahoo
27-05-2025
- Business
- Yahoo
1 No-Brainer S&P 500 Index Fund to Buy Right Now for Less Than $200
The S&P 500 is considered the best benchmark of how the U.S. stock market is performing. One major problem is the S&P 500's concentration in large-cap tech stocks. The Invesco S&P 500 Equal Weight ETF can be a smart way to get broad stock market exposure. 10 stocks we like better than Invesco S&P 500 Equal Weight ETF › The S&P 500 is widely considered to be the best indicator of how the U.S. stock market is doing, and it's easy to understand why. After all, it contains 500 of the largest companies in the United States, and these collectively represent 80% of the overall value of all publicly traded companies. However, one characteristic of the S&P 500 that is very important for investors to understand is that it's a weighted index, which means that larger companies account for a greater percentage of the index's performance. And with the rise of trillion-dollar megacap technology companies over the past decade or so, this weighting has resulted in a rather high concentration in just a few big companies. For example, the largest companies in the United States, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), make up 6.8% and 6.2% of the entire weighting of the S&P 500, respectively. The 10 largest companies in the index make up 35.6% of the S&P 500's performance. That's more than the smallest 300 components of the index combined. In simple terms, I like the idea of investing in 500 of the largest and most successful U.S. companies. But I don't like that much of my investment performance dependent on just a few stocks, while hundreds of others barely have any impact on my long-term returns. The Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP) solves this problem. It invests in the same 500 companies as an S&P 500 index fund, except every single component has the same influence on the ETF's performance. That means companies such as General Motors (NYSE: GM), Occidental Petroleum (NYSE: OXY), and Hormel Foods (NYSE: HRL) carry the same weight as tech behemoths such as Apple, Microsoft, and Nvidia (NASDAQ: NVDA). The idea is that if American business collectively performs well, you'll reap the benefits. But you also won't feel a significant sting if, say, Nvidia posts a bad quarterly report. Sure, you'll miss out on some of the benefits if massive companies perform well, but this tends to be offset over time by the greater exposure to smaller components of the S&P 500, which tend to have more dynamic growth potential. Speaking of growth potential, although the equal weight S&P 500 has underperformed the traditional version of the index during the megacap tech surge of the past few years, you might be surprised to learn that the equal weight index has actually outperformed its weighted counterpart over the long run. In fact, over the past 40 years, the S&P 500 equal weight index has produced a total return that's more than 400 percentage points greater than the weighted S&P 500. The Invesco S&P 500 Equal Weight ETF has a 0.20% expense ratio, which is a bit higher than you'd pay for most standard S&P 500 index funds but is still on the low end for a specialized ETF product. There's nothing wrong with simply buying a traditional S&P 500 index fund and holding it for the long term. Doing so has historically been a strong wealth creation strategy, and in full disclosure, I own shares of the Vanguard S&P 500 ETF (NYSEMKT: VOO) in my portfolio. However, the relative top-heaviness of the S&P 500 makes the index's performance disproportionately dependent on just a few companies, so if you aren't too comfortable with this level of concentration, the Invesco S&P 500 Equal Weight ETF is an alternative that could be worth a closer look. Before you buy stock in Invesco S&P 500 Equal Weight ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco S&P 500 Equal Weight ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt Frankel has positions in General Motors and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends General Motors and Occidental Petroleum and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 1 No-Brainer S&P 500 Index Fund to Buy Right Now for Less Than $200 was originally published by The Motley Fool
Yahoo
27-05-2025
- Business
- Yahoo
Is the Vanguard Mega Cap Growth ETF Your Ticket to Mega Returns?
The Vanguard Mega Cap Growth ETF is focused on owning the largest companies. The biggest companies are often the ones that drive the market higher during upturns. Large companies can also lead the market lower during downturns. 10 stocks we like better than Vanguard World Fund - Vanguard Mega Cap Growth ETF › The Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) does exactly what its name implies: It buys the largest growth companies. That's been a winning investment plan for a number of years, but investors need to consider the portfolio of this exchange-traded fund (ETF) a bit more deeply before making a new commitment today. Here's why the Vanguard Mega Cap Growth ETF could be a problem for your portfolio if you don't understand what it is you are buying. The Vanguard Mega Cap ETF tracks the CRSP US Mega Cap Growth Index. Some complex math goes into the index, but the outcomes are pretty simple to understand. It uses market caps to determine what stocks count as megacaps. It factors in earnings growth, return on assets, and the investment-to-assets ratio to assign companies to the growth category. The companies that are found in both groups get into the ETF. This isn't a good or bad approach, per se. What it does is put investors into the stocks that are likely to be the most popular during market upturns. That can feel pretty good in a bull market. However, there's a problem to consider because buying the largest, most popular companies is also likely to lead investors to be overweight in a small number of stocks. For example, just three stocks make up more than a third of this Vanguard ETF's portfolio today. All three fall into the technology sector. They are names you likely know: Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA). But that's not the end of the story, because technology as a sector makes up a huge 60% of the ETF's assets right now. When the market turns lower, the largest and most popular stocks and sectors are likely to lead the way down. Which means that bear markets and corrections are likely to be particularly painful if you own the Vanguard Mega Cap Growth ETF. Which is why it is interesting to consider 2025 as a stress test. Comparing the Vanguard Mega Cap Growth ETF to the broader S&P 500 index (SNPINDEX: ^GSPC) and an equal-weighted version of the S&P 500 index, the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP), is illuminating. Notice that the Vanguard ETF fell furthest during this turbulent period. The more diversified S&P 500 index, which itself leans toward large caps and is market-cap weighted, fell in the middle, performance wise. And the Invesco S&P 500 Equal Weight ETF, which gives each stock in the S&P 500 index the same weighting (meaning that each company has the same opportunity to affect performance), was the best performer. In this period, giving the largest, and likely recently best-performing, companies an overweight status turned into a liability. To be fair, if you look over a longer period of time, the Vanguard ETF is the clear winner. And it rebalances quarterly, so it is fairly quick to change when the market leaders shift. But investors shouldn't go in without understanding the risk that focusing on the biggest and the best can lead to worse drawdowns when the market shifts from a bull to a bear. There's nothing wrong with buying the Vanguard Mega Cap Growth ETF as long as you understand what it is you own. History suggests that you will do particularly well in good markets. Most investors will see that as a win. That said, you need to go in knowing that downturns could be particularly difficult times for this ETF. And you'll either need to grit your teeth and hold for the long term or, perhaps better, pair the Vanguard Mega Cap ETF with another investment that will perform better during downturns. That way, you have something else to look at besides the red ink the Vanguard Mega Cap Growth ETF is putting up. Before you buy stock in Vanguard World Fund - Vanguard Mega Cap Growth ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard World Fund - Vanguard Mega Cap Growth ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Is the Vanguard Mega Cap Growth ETF Your Ticket to Mega Returns? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Is the Invesco S&P 500 Equal Weight ETF a Better Buy Than an S&P 500 ETF?
The S&P 500 index is the benchmark for the broader market. The Invesco S&P 500 Equal Weight ETF changes the index approach in an important way. The ETF has outperformed the oldest S&P 500 tracking ETF over the longer term. 10 stocks we like better than Invesco S&P 500 Equal Weight ETF › The first exchange-traded fund (ETF) created was the SPDR S&P 500 ETF. It was a logical first step for what has now become a massive product category. There are multiple ways to use ETFs in a portfolio, but one of the best ways for long-term investors is still to simply buy the broad-based S&P 500 index. But before you do that, consider the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP), a better performing S&P 500 index variant. From a big-picture perspective, the S&P 500 index isn't actually meant to track the market. The 500 or so stocks in the index are hand-selected by a committee to be representative of the U.S. economy. In keeping with that goal, the stocks in the index are market-cap weighted. This means that the largest companies have the greatest impact on the performance of the index and index-tracking ETFs like the Vanguard 500 Index ETF (which has a lower management fee than the SPDR S&P 500 Index ETF). That's basically what would happen with the real world, too. It just so happens that tracking the U.S. economy has worked out well over time. And, thus, the S&P 500 index has been adopted as the key benchmark for the U.S. market. History is very clear that over time, even if you bought at market peaks, just owning the S&P 500 index, via a low-cost mutual fund or ETF, has worked out very well. As the graph below highlights, even deep downturns and recessions (represented by the shaded areas) now appear to be little more than blips along the S&P 500 index's climb higher. That includes the crash at the turn of the century, when the Y2K bug had investors worried about the risk of a technology collapse, and the deeply troubling financial crisis around the Great Recession, when the potential for a global economic collapse was the worry. If all you did was buy the S&P 500 index, and kept buying it to benefit from dollar-cost averaging, you would probably end up pretty happy when you retired. But there is a potentially better alternative, which is just a minor variation on the same index. You can own it as an exchange-traded fund via the purchase of the Invesco S&P 500 Equal Weight ETF. The nice part about the Invesco Equal Weight ETF is that it owns all of the same stocks as the S&P 500 index. So it remains broadly representative of the U.S. economy. The only difference is in the way the stocks in the ETF are weighted. As the name suggests, every stock is given the same weight as every other stock. This means that every stock has the same impact on performance. It is an important twist. One of the problems with market-cap weighting is that the hottest stocks are often bid up to the point where they are the largest stocks. This is great during bull markets, but it can end up leaving the index overweight in some sectors. If a bear market comes around and the hot sectors cool off, the market can take a big hit. Equal weighting avoids this issue. A second problem with market-cap weighting is that smaller, faster growing companies don't affect the index as much as larger companies. Equal weighting helps to increase the benefit over time from companies that are quickly growing, but smaller. And the Invesco S&P 500 Equal Weight ETF will tend to have a higher yield than a market-cap weighted S&P 500 ETF because larger, popular stocks often have lower yields. By investing more in smaller, higher yielding stocks, the Invesco S&P 500 Equal Weight ETF boosts the overall portfolio's yield by around 30 basis points. As the chart above highlights, the Invesco S&P 500 Equal Weight ETF has outperformed SPDR S&P 500 ETF on both a price-only basis and on a total-return basis, which assumes the reinvestment of dividends. You can argue that the differences here aren't that large given the long time periods being considered, which is true. However, if you are looking for any edge you can get, the Invesco S&P 500 Equal Weight ETF's approach has, over time, proved to be the better choice for passive long-term investors. Before you buy stock in Invesco S&P 500 Equal Weight ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco S&P 500 Equal Weight ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. Is the Invesco S&P 500 Equal Weight ETF a Better Buy Than an S&P 500 ETF? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
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David Einhorn's Strategic Moves: Core Natural Resources Inc. Takes Center Stage with 3. ...
Warning! GuruFocus has detected 1 Warning Sign with GRBK. David Einhorn (Trades, Portfolio) recently submitted the 13F filing for the first quarter of 2025, providing insights into his investment moves during this period. David Einhorn (Trades, Portfolio) is president of Greenlight Capital, a value-oriented investment advisor founded in 1996. The hedge fund is based in New York. Greenlight invests primarily in publicly traded North American corporate debt offerings and equities. Einhorn believes an investment approach emphasizing intrinsic value will achieve consistent absolute investment returns and safeguard capital regardless of market conditions. He is a noted activist investor, taking positions in companies, and then pushing management to implement changes. David Einhorn (Trades, Portfolio) added a total of 1 stock, among them: The most significant addition was Dollar Tree Inc (NASDAQ:DLTR), with 436,360 shares, accounting for 1.66% of the portfolio and a total value of $32.76 million. David Einhorn (Trades, Portfolio) also increased stakes in a total of 14 stocks, among them: The most notable increase was Core Natural Resources Inc (NYSE:CNR), with an additional 813,999 shares, bringing the total to 2,208,640 shares. This adjustment represents a significant 58.37% increase in share count, a 3.18% impact on the current portfolio, and a total value of $170,286,150. The second largest increase was Teck Resources Ltd (NYSE:TECK), with an additional 913,337 shares, bringing the total to 2,000,000. This adjustment represents a significant 84.05% increase in share count, with a total value of $72,860,000. David Einhorn (Trades, Portfolio) completely exited 4 holdings in the first quarter of 2025, as detailed below: Invesco S&P 500 Equal Weight ETF (RSP): David Einhorn (Trades, Portfolio) sold all 27,530 shares, resulting in a -0.25% impact on the portfolio. SPDR Retail ETF (XRT): David Einhorn (Trades, Portfolio) liquidated all 59,810 shares, causing a -0.24% impact on the portfolio. David Einhorn (Trades, Portfolio) also reduced positions in 9 stocks. The most significant changes include: Reduced Peloton Interactive Inc (NASDAQ:PTON) by 5,519,279 shares, resulting in a -52.45% decrease in shares and a -2.47% impact on the portfolio. The stock traded at an average price of $7.85 during the quarter and has returned -35.21% over the past 3 months and -27.24% year-to-date. Reduced CNH Industrial NV (NYSE:CNH) by 2,158,180 shares, resulting in a -21.09% reduction in shares and a -1.26% impact on the portfolio. The stock traded at an average price of $12.54 during the quarter and has returned 4.61% over the past 3 months and 18.27% year-to-date. At the first quarter of 2025, David Einhorn (Trades, Portfolio)'s portfolio included 33 stocks. The top holdings included 27.96% in Green Brick Partners Inc (NYSE:GRBK), 8.62% in Core Natural Resources Inc (NYSE:CNR), 8.23% in Brighthouse Financial Inc (NASDAQ:BHF), 6.58% in Kyndryl Holdings Inc (NYSE:KD), and 5.18% in PENN Entertainment Inc (NASDAQ:PENN). The holdings are mainly concentrated in 9 of all the 11 industries: Consumer Cyclical, Energy, Technology, Healthcare, Financial Services, Industrials, Basic Materials, Communication Services, and Consumer Defensive. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
