Nvidia gets 20% weighting, more investor demand; Apple demoted in major techfund

Re:Nvidia gets 20% weighting, more investor demand; Apple de... by usaar333 on Monday June 17, 2024 @02:36PM (#40709343)

Well, I regret buying XLK compared to other tech ETFs. Bad weighing and potentially high tax costs going forward.

There's an artificial rule that a company can't be more than 4.5% of the index except the top 2.

Nvidia was ahead of Apple last week, so they need to sell huge amounts of Apple (distributing capital gains) to buy a bunch of Nvidia.

Worse, Apple is ahead of Nvidia at the moment. More likely than not, it will be in one quarter. So we get yet another huge rotation.

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Re:Nvidia gets 20% weighting, more investor demand; Apple de... by outside1234 on Monday June 17, 2024 @02:50PM (#40709521)

Folks, from someone that has made all of these errors over twenty years, the best thing you can do is just buy a total stock market index fund (eg. VTI).

Don't try to overweight or underweight companies or guess winners or losers.

Twenty five years ago doing this sort of guessing would have had you underweighting Apple for example.

And frankly, I think the same mistake today would be overweighting NVIDIA.

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Re:Nvidia gets 20% weighting, more investor demand; Apple de... by _zoltan_ on Monday June 17, 2024 @04:52PM (#40710909)

this was all true 20 years ago. today trading is so universal and available that only buy VTI if you hate money :-)

if you have the time then start trading or leverage up and you'll beat the index.

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Re:Nvidia gets 20% weighting, more investor demand; Apple de... by archagon on Monday June 17, 2024 @05:55PM (#40711525)

Can you elaborate? When you say "start trading," what criteria would you use to pick stocks that beat the index?

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Re:Nvidia gets 20% weighting, more investor demand; Apple de... by _zoltan_ on Thursday June 20, 2024 @02:41PM (#40741819)

AMD.

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