Want To Simplify Your Portfolio? Try The Invesco S&P 500 Top 50 ETF

Summary

• XLG owns the top 50 stocks in the S&P 500, making it a solid choice for mega-cap investors. Fees are competitive at 0.20%, and the Index reconstitutes annually in June.
• XLG is extremely concentrated with 71% in the top 20 holdings, but historically, it's tracked the S&P 500 and other similar Indexes quite well.
• There's an opportunity for solid short-term outperformance given XLG's stronger growth profile, but that's only true if the market has bottomed. I don't think that's the case today.
• Therefore, XLG isn't a buy today, but if the market continues to drop, XLG is a relatively safe passive holding worth putting on your watchlist.

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Investment Thesis

For the last decade, it's paid to only the largest companies in the U.S. Forget small-, mid-, and the smaller large-caps in the S&P 500. Investing in stocks like Apple (AAPL), Microsoft (

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPY, VOO, IVV, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.