The Truth: Your S&P 500 ETF Is Riskier Than You Re
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Posted On: 09/18/2020 5:01:46 PM
The Truth: Your S&P 500 ETF Is Riskier Than You Realize
Summary
In this article, I’ll be talking about the extreme concentration driving the S&P 500 index and the five mega-tech stocks that have given rise to the index’s forbidding valuation.
I’ll also discuss attractive value stocks that can reduce portfolio risk.
The S&P 500, despite the recent pullback, is at pre-pandemic levels - but this top-line performance is misleading.
Year to date, 60% of the stocks in the S&P 500 had a negative return and only 26% of the stocks exceeded the index’s return; just five stocks are responsible for the S&P 500’s outstretched performance.
Bottom line: Respect concentration risk. And diversify your portfolio. These value stocks from Seeking Alpha’s Top Value Stocks screening tool are a great place to start.
Full story>>>>>
https://seekingalpha.com/article/4375090-trut...ent=link-0
Summary
In this article, I’ll be talking about the extreme concentration driving the S&P 500 index and the five mega-tech stocks that have given rise to the index’s forbidding valuation.
I’ll also discuss attractive value stocks that can reduce portfolio risk.
The S&P 500, despite the recent pullback, is at pre-pandemic levels - but this top-line performance is misleading.
Year to date, 60% of the stocks in the S&P 500 had a negative return and only 26% of the stocks exceeded the index’s return; just five stocks are responsible for the S&P 500’s outstretched performance.
Bottom line: Respect concentration risk. And diversify your portfolio. These value stocks from Seeking Alpha’s Top Value Stocks screening tool are a great place to start.
Full story>>>>>
https://seekingalpha.com/article/4375090-trut...ent=link-0
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