Todd Rosenbluth, head of research at VettaFi, has suggested that the market dominance of Big Tech companies may prompt investors to consider equal-weight exchange-traded funds. He stated that investors are becoming concerned about the concentration of money in a few stocks within popular ETFs linked to the S&P 500 or the Nasdaq 100. Rosenbluth recommended the Invesco S&P 500 Equal Weight ETF and the Invesco S&P 500 Equal Weight Technology ETF as potential options for investors wanting to decrease their exposure to the prominent tech companies. He explained that these ETFs include the same companies found within the S&P 500 or technology sector, but they distribute the risk across a broader range of companies instead of being dominated by Apple, Microsoft, and Nvidia. Before the earnings reports from five of the prominent tech companies, BNY Mellon’s Ben Slavin observed that there has been slow investment flow into this group so far this year. He also noted a growing interest in “less-loved” market groups such as financials and parts of real estate, as revealed in conversations with advisors who are starting to feel uneasy about Big Tech valuations. The CNBC Magnificent 7 Index, composed of Apple, Alphabet, Meta, Microsoft, Amazon, Nvidia, and Tesla, experienced nearly a 6% rise on Friday and has seen a 68% increase in the past 52 weeks.
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