"It isn't all too often you hear of a billionaire investor betting big on an ETF. Undoubtedly, much of the value in investing alongside the professional money managers comes from their ability to pick individual winners. In any case, whenever a smart investor places a bet on a broad index, I do think investors should be paying close attention. Undoubtedly, perhaps such a broad vote of confidence in the market or a specific sector is a sign of where the alpha could lie."
"Either way, I think supplementing one's portfolio of individual stocks with a broad market ETF or even a portfolio of ETFs is a great way to go, especially if you want to participate in the market's returns but don't quite have any solid individual investment ideas at a certain point in time. In any case, when billionaire Chris Rokos of Rokos Capital Management picked up the Invesco QQQ Trust ( NASDAQ:QQQ) last year,"
"Undoubtedly, there's growing concern that the S&P 500 is getting pricey and will be destined for lackluster returns in the next 10 years. When it comes to the Invesco QQQ Trust, which follows the Nasdaq 100 index, there are arguably even greater concerns about valuation. It's an even pricier index, thanks in part to its greater exposure to the U.S. tech sector and the mega-cap tech titans that are flying high over AI hopes."
Chris Rokos of Rokos Capital Management picked up the Invesco QQQ Trust (NASDAQ: QQQ) last year, signaling a notable bet on the Nasdaq 100. Supplementing individual stock holdings with a broad market ETF or a portfolio of ETFs can provide market participation when single-name conviction is lacking. The Nasdaq 100 has heavier exposure to U.S. technology and mega-cap AI-focused companies, making it pricier than the S&P 500 and creating valuation concerns. If AI investments deliver strong ROI, mega-cap tech spenders could drive QQQ to outperform the S&P over the coming decade.
Read at 24/7 Wall St.
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