Meet the Low-Cost Vanguard ETF With Taiwan Semiconductor, Samsung Electronics, SK Hynix, and ASML as Its 4 Largest Holdings
The five most valuable companies in the world are U.S. stocks Nvidia (NASDAQ: NVDA), Apple, Alphabet, Microsoft, and Amazon. And 16 of the world’s top 20 most valuable companies are U.S. firms.
The sheer size of these companies makes the S&P 500 (SNPINDEX: ^GSPC), Nasdaq-100, and index funds and exchange-traded funds (ETFs) linked to these benchmarks increasingly top-heavy. Meaning that just a handful of stocks and themes can drive performance, for better or worse.
Concentration is amplified for investors with dual exposure to these massive companies through ETFs and their individual holdings. The focused structure has paid off big time for U.S. investors — as U.S. stocks have generally outperformed international stocks since the financial crisis of 2008.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.