And with tech stocks making up a record 37% of the S&P 500, the pullback could drag down the entire index. As such, it would be smart to spread your eggs a bit wider
You could look into classic anti-crisis investments like gold or blue-chip stocks. Another way to limit your reliance on tech stocks is to switch to an ETF fund that tracks the S&P 500 Equal Weight Index.
The largest ETF of this kind is Invesco S&P 500® Equal Weight ETF ---- RSP
Unlike the standard S&P index fund, this one doesn’t take into account the stock’s weight. That means an ETF fund that tracks it will spread your investment over 505 stocks in equal parts, regardless of weight.
This way, you’ll invest in a more diversified basket of America’s top stocks without banking 37% of your money on tech stocks.
I like it, good idea. Also thinking a total US market fund to get small and mid cap exposure. They got the worst of it from the lockdowns, they should have a nice sustained bounce when things get back to normal.