A widely held investing belief is that growth and technology stocks are vulnerable to rising interest rates. That was confirmed in 2022.
In what represents a familiar refrain to what investors have heard over the past several years, a small number of stocks account for a significant percentage of the S&P 500's 2024 upside. And owing to YTD weakness in shares of Apple (AAPL) and Tesla (TSLA), the much-ballyhooed “Magnificent Seven” has been pared to the “Fabulous Five.
Experienced investors are familiar with the old financial markets saying: “Sell in May and go away.” While not always accurate from year to year, the message is simple.
There is an overall upward bias for the stock indices, as companies that perform poorly are dropped from an index while companies that are doing well are added. The S&P 500 has annualized yearly returns of 10.6% over the last 100 years.
ETFs are baskets of stocks that can help investors diversify their portfolios. The Invesco QQQ Trust has outperformed the major stock market indexes over the last 20 years.
The recent pullback in U.S. equities looks temporary. Several bullish catalysts point to higher prices into year-end.
Exchange-traded funds (ETFs) are a valuable tool for investors looking to tap into the growth potential of specific sectors.
Investors' enthusiasm for artificial intelligence (AI) equities remains undaunted. Consider the following point courtesy of Wall Street Journal financial columnist James Mackintosh.
The ProShares UltraPro QQQ ETF gives you three times the NASDAQ-100's (daily) NAV return. That might sound enticing but in order to give you this 3X return, ProShares has to use extreme amounts of leverage. The fund's total expense ratio (0.88%) is more than four times that of the Invesco QQQ Trust. And the expense ratio does not include interest expenses or option premiums.
While the S&P 500 index has been hitting new record highs, some ETFs have outperformed it. The Vanguard S&P 500 Growth ETF and Invesco QQQ ETF are two notable examples over the years.
A year ago I wrote an article on the Invesco QQQ Trust ETF, explaining why I had sold the fund. Basically I found the NASDAQ-100 index to be overpriced. Ultimately I ended up being wrong about the fund's growth potential.
Looking to invest in the tech sector? Then you'll likely be looking at NASDAQ stocks, but the NASDAQ is a huge exchange, and investors need ways to break down the components for analysis.