"Indeed, there are a number of leading investors from Warren Buffett to other high-profile institutional money managers who believe most investors should just rely on the long-term growth large-cap U.S. stocks can provide over the long-term. Beating the benchmarks may seem like an exhilarating ride higher, particularly in bull markets. But in down markets, investing in the same higher-beta names can lead to larger downside than the overall market."
"In this market, it's clear that the investors who have truly "won" or beaten most U.S.-based market index benchmarks have been those who have been overweight technology. For those looking to track companies that are almost exclusively tied to the sort of high-growth trends underpinning most tech companies, the Invesco QQQ Trust ( QQQ) is often the preferred way to play this trend."
Investors have many ETF options across passive, active, and hybrid strategies. Large-cap U.S. stocks offer long-term growth and form a sensible portfolio base to match benchmarks. Overweighting technology has produced benchmark-beating results but increases downside in market declines due to higher beta. Four ETFs are identified to pursue long-term growth with lower volatility. Invesco QQQ tracks the 100 largest Nasdaq companies, focusing on blue-chip tech and excluding smaller-cap, higher-risk firms. QQQ suits long-term investors seeking exposure to high-growth tech trends while moderating risk compared with small-cap tech plays. Expense differences matter when comparing index funds.
Read at 24/7 Wall St.
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