Narrow-Focused ETFs Carry Risks, Advisors Warn
“Diverse in number, but not in exposure.” – Michael Macauley, Signature Estate & Investment Advisors
Even the mighty S&P 500 isn’t immune to concentration risk. A handful of tech giants now drive the entire index, moving in lockstep and reducing true diversification.
But here’s the nuance: Companies like Amazon aren’t just online retailers anymore – they’re in streaming, cloud computing, and multiple industries.
“This in and of itself represents business diversity,” says Macauley.
The takeaway? Don’t just count holdings – understand what really drives your investments.
more
Read More
Third Party Site
The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website. When you access one of these websites, you are leaving our web site and assume total responsibility and risk for your use of the websites you are linking to.
Dated Material
Dated material presented here is available for historical and archival purposes only and does not represent the current market environment. Dated material should not be used to make investment decisions or be construed directly or indirectly, as an offer to buy or sell any securities mentioned. Past performance cannot guarantee future results.
Market Commentary|October 2023