A new ETF for inventors scared of the U.S. stock market’s obvious flaw

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A new ETF for inventors scared of the U.S. stock market’s obvious flaw
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A solution to a massive problem

Seven tech stocks make up nearly 30 per cent of the S&P 500 - Apple Inc ., Microsoft Corp. , NVIDIA Corp. Inc . Alphabet Inc . and Meta Platforms Inc . It’s all good right now because these seven stocks have helped to power big returns for the S&P 500 in recent years.

XUSC launched on July 9, so it’s too new to have any published data on its performance or management expense ratio. The management fee is posted at 0.12 per cent, which suggests a still-reasonable MER of a few ticks higher. A reader recently got in touch to ask if it makes sense from a diversification perspective to shift some money held in a traditional S&P 500 index ETF into an equal-weight version. The answer is that a partial change seems better than making a full-on move out of the traditional S&P 500. The seven tech stocks leading the S&P will eventually lose momentum, but it may take a while.

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