We know that the S&P 500 is supposed to be a means of diversifying your portfolio. However, many of these stocks are highly correlated, and around half of the S&P is tech stocks. If I am a novice long term investor, looking to diversify, and genuinely looking to gain exposure to the entire market through ETF’s, is there a combination with the S&P 500 that should have less variability, with slightly less returns? Looking to be “aggressive” with a 100% stock portfolio but not really trying to to have big drawdowns.
Leave a Reply