Posted: 8/10/2025 9:37:13 PM EDT
| If you look at the various holdings of the most talked about ETF's, they are mostly invested in the same 10(or so) companies. NVDA, MSFT, AAPL, TSLA, ,etc. I'm sure there are varied fees and such, but are any better than the others for capital growth..? |
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Originally Posted By bondservant2: If you look at the various holdings of the most talked about ETF's, they are mostly invested in the same 10(or so) companies. NVDA, MSFT, AAPL, TSLA, ,etc. I'm sure there are varied fees and such, but are any better than the others for capital growth..? Well, sure, if the underlying indices the ETFs are based on are market cap weighted and include the largest stocks, this is what happens. As to "best," look at management fees. For ETFs with identical holdings, the one with the lowest management fee will generally have the best net performance. |
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Originally Posted By bondservant2: If you look at the various holdings of the most talked about ETF's, they are mostly invested in the same 10(or so) companies. NVDA, MSFT, AAPL, TSLA, ,etc. I'm sure there are varied fees and such, but are any better than the others for capital growth..? Any total market fund, sp500 fund, or nasdaq fund will have similar composition because those companies are the largest and, therefore, make up the largest portions of each of those indexes. If you make an sp500 fund it has to mirror the distribution of the sp500 so all sp500 funds have identical holdings. People talk about those funds the most because they are the most common fund composition by a very wide margin. If you want significantly more growth than one of those index funds can provide then you need to accept significantly more risk and volatility. |
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No. Management fee's and other holdings aside from the Mag 7 are all factors as well. IMO the best back-bone of a portfolio is a S&P500 ETF like VOO for example. Its a good balance of growth, stability, diversification and performance. I know some guys like the idea of trading off performance for more diversification (Like a total market fund). But I don't think its necessary. |