The Lemon Fool

With reference to viewtopic.php?p=631357#p631357

I'm a youngish retiree (62 now). I was considering investing in the US market with a long term view ( the longer the better, I hope).

I want to 'avoid ' the big 7 tech stocks (Apple (ticker: AAPL), Amazon.com (AMZN), Google parent Alphabet (GOOGL), Facebook parent Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA)....especially Tesla!)

Is there a fund that invests in US stocks minus these seven companies? Preferably a low cost fund ( ruling out Mr Smith).

Why would you want to do that? I'd agree that Tesla are er - a little flaky perhaps - but the rest are pretty sound are they not?

monabri wrote:With reference to viewtopic.php?p=631357#p631357

I'm a youngish retiree (62 now). I was considering investing in the US market with a long term view ( the longer the better, I hope).

I want to 'avoid ' the big 7 tech stocks (Apple (ticker: AAPL), Amazon.com (AMZN), Google parent Alphabet (GOOGL), Facebook parent Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA)....especially Tesla!)

Is there a fund that invests in US stocks minus these seven companies? Preferably a low cost fund ( ruling out Mr Smith).

Rather than avoid the 7 totally I would suggest an equal weighted S&P500 ETF will do pretty much what you want.

simoan wrote:

monabri wrote:With reference to viewtopic.php?p=631357#p631357

I'm a youngish retiree (62 now). I was considering investing in the US market with a long term view ( the longer the better, I hope).

I want to 'avoid ' the big 7 tech stocks (Apple (ticker: AAPL), Amazon.com (AMZN), Google parent Alphabet (GOOGL), Facebook parent Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA)....especially Tesla!)

Is there a fund that invests in US stocks minus these seven companies? Preferably a low cost fund ( ruling out Mr Smith).

Rather than avoid the 7 totally I would suggest an equal weighted S&P500 ETF will do pretty much what you want.

RSP is the largest equal-weight S&P 500 tracker I am aware of.

Although such is the breadth and depth of the US market that even Apple and MicroSoft are only about 6% to 7% of market cap. I would suggest that the FTSE-100 is more concentrated than the S&P 500. Those are my two biggest holdings aside from Berkshire Hathaway. I hold all of the "7" aside from Tesla - I prefer GM as a ev play, and its price earnings ratio is abut 5.

Lootman wrote:

simoan wrote:Rather than avoid the 7 totally I would suggest an equal weighted S&P500 ETF will do pretty much what you want.

RSP is the largest equal-weight S&P 500 tracker I am aware of.

Although such is the breadth and depth of the US market that even Apple and MicroSoft are only about 6% to 7% of market cap. I would suggest that the FTSE-100 is more concentrated than the S&P 500. Those are my two biggest holdings aside from Berkshire Hathaway. I hold all of the "7" aside from Tesla - I prefer GM as a ev play, and its price earnings ratio is abut 5.

Not come across RSP....I'm not sure if KIDDs are available for that fund.

https://www.hl.co.uk/shares/shares-sear ... ql-wgt-etf

"By law certain stocks must have a Key Investor Information Document / Key Information Document available before investors can purchase them. The party responsible for publishing the documents have not made them available to Hargreaves Lansdown for this stock and so it cannot be purchased. We apologise for any inconvenience caused."

monabri wrote:

Lootman wrote:RSP is the largest equal-weight S&P 500 tracker I am aware of.

Although such is the breadth and depth of the US market that even Apple and MicroSoft are only about 6% to 7% of market cap. I would suggest that the FTSE-100 is more concentrated than the S&P 500. Those are my two biggest holdings aside from Berkshire Hathaway. I hold all of the "7" aside from Tesla - I prefer GM as a ev play, and its price earnings ratio is abut 5.

Not come across RSP....I'm not sure if KIDDs are available for that fund.

https://www.hl.co.uk/shares/shares-sear ... ql-wgt-etf

"By law certain stocks must have a Key Investor Information Document / Key Information Document available before investors can purchase them. The party responsible for publishing the documents have not made them available to Hargreaves Lansdown for this stock and so it cannot be purchased. We apologise for any inconvenience caused."

I have not tried to buy RSP. It is US-listed and the one I see quoted the most when equal weighting comes up, so presumably is the most liquid.

IShares (ISPE) iShares S&P 500 Equal Weight UCITS ETF

https://www.ishares.com/uk/individual/e ... -ucits-etf

Or "EWSP" ( non- hedged).


https://www.ishares.com/uk/individual/e ... -ucits-etf

monabri wrote:IShares (ISPE) iShares S&P 500 Equal Weight UCITS ETF

https://www.ishares.com/uk/individual/e ... -ucits-etf

Or "EWSP" ( non- hedged).

https://www.ishares.com/uk/individual/e ... -ucits-etf

Hedging of FX always comes at a cost. Given that the perennial weakness of sterling is a tailwind behind foreign investing, hedging seems moot to me.

Lootman wrote:

monabri wrote:IShares (ISPE) iShares S&P 500 Equal Weight UCITS ETF

https://www.ishares.com/uk/individual/e ... -ucits-etf

Or "EWSP" ( non- hedged).

https://www.ishares.com/uk/individual/e ... -ucits-etf

Hedging of FX always comes at a cost. Given that the perennial weakness of sterling is a tailwind behind foreign investing, hedging seems moot to me.

The equal weight has a significant effect, the hedging considerably less.
Both ISPE and EWSP are recent introductions - starting around August 2022, so looking at a 1 year total return:-
ISPE = 3.63%
EWSP = 2.34%
And a non-equal-weighted, non-hedged S%P 500 (CSP1) = 13.65%
(data from Hargreaves Lansdown)

Not sure about a specific fund, but have you checked out total market index funds? They usually spread across a bunch of companies, so you might dodge those big tech ones you're trying to avoid. Vanguard and Fidelity got some decent low-cost options, worth a look.

skyshield wrote:Not sure about a specific fund, but have you checked out total market index funds? They usually spread across a bunch of companies, so you might dodge those big tech ones you're trying to avoid. Vanguard and Fidelity got some decent low-cost options, worth a look.

I did a quick analysis of a developed world tracker a little while back, the top half of the index constituents comprise 94% of the value, thus a total market index may provide diversification among more companies, it does not dilute the concentration much.