Exchange Traded Funds (ETF’s) can be the answer to: How do you buy expensive stocks, like Apple Computer? It is tough to have a balanced portfolio when one stock represents a large portion of the investment account. We have found there are plenty of exchange-traded funds where a large portion of the portfolio is invested in one stock (like Apple). This can be an alternative way to participate in a stock move… without owning the actual stock itself.
Regarding Apple: Several exchange traded funds like QQQ and IYW invest a significant portion of their funds in this one investment. Likewise, with the exchange traded fund VOX, nearly half of the portfolio (46%) is invested in just two stocks, AT&T and Verizon.
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If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.
I would also add the following: Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.
All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.