Billionaires shifting from Nvidia to top index funds that outperformed S&P 500

From Nasdaq: 2024-05-06 04:55:00

Hedge fund billionaires have been selling down their positions in chipmaker Nvidia to reallocate capital to high-growth index funds like Invesco QQQ Trust and iShares U.S. Technology ETF. These index funds have outperformed the S&P 500 over the last 10 years, with the iShares U.S. Technology ETF returning 528% and the Invesco QQQ Trust returning 440%.

The Invesco QQQ Trust tracks the Nasdaq-100, heavily weighted toward information technology and consumer discretionary sectors. The top 10 positions include Microsoft, Apple, Nvidia, Alphabet, Amazon, and Meta Platforms. The index fund has seen significant outperformance over the last two decades, compounding at 14.3% annually with a low expense ratio of 0.2%.

The iShares U.S. Technology ETF includes 131 stocks in the information technology sector, rebalanced quarterly to ensure a diversified portfolio. The top 10 positions include Microsoft, Apple, Nvidia, Alphabet, Meta Platforms, and Broadcom. This index fund has also outperformed the S&P 500, returning 1,240% over the last two decades with a higher expense ratio of 0.4%.

Investors looking for exposure to high-growth tech stocks may consider the Vanguard Information Technology ETF (VGT) as an alternative to the iShares U.S. Technology ETF. VGT has performed slightly better over the last two decades with a lower expense ratio of 0.1%, making it an attractive option for those interested in the tech sector.



Read more at Nasdaq: Billionaires Are Selling Nvidia Stock and Buying 2 Top Index Funds That Beat the S&P 500 Over the Past Decade