XLG vs S&P 500


I was curious about people’s thoughts on investing in XLG (Invesco S&P 500® Top 50 ETF) instead of a index that tracks the full S&P 500 (VOO or SPY).

XLG tracks only the top 50 so it’s a lot more concentrated:

• VOO’s top 10 accounts for 27%

• XLG’s top 10 accounts for 52%

• AAPL in VOO is 6.88%

• AAPL in XLG is 13.12%

My thought process here is that I’m young enough (early 20s) to take on the risk of being more heavily concentrated with the hopes that the top dogs of the S&P will outperform the bottom 450. I’d love to hear what people think of this idea. I know people say it’s hard to beat the S&P but this seems like a way to just play the S&P but with more risk/reward.


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