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Call me a concerned current holder of Invesco S&P 500® Top 50 ETF (NYSEARCA:XLG). I own it, and I'm happy that it has performed well versus the broader S&P 500 so far this year. But historically, markets
XLG: Potential Victim If This Narrow S&P 500 Market Broadens
Summary
- The S&P 500 has had a very deceptive first 4 months, with a small number of stocks making it look like "the market" is up. That's not the case.
- XLG, which holds the 50 largest stocks, has dominated the broader market so far in 2023. And even that ETF has been carried by its biggest holdings.
- I rate XLG a Hold, but I doubt this dominance will last the year, as the market inevitably broadens.
I'm Rob Isbitts, founder of Sungarden Investment Publishing. I run the new investing group Sungarden Investors Club, a community dedicated to navigating the modern investment climate with humility, discipline, and a non-traditional approach to income investing. I've been charting investments since the 1980s, and I spent decades an an investment advisor and fund manager before semi-retiring in 2020. Now, this investing group is my focus. The markets tells us a story…we just have to listen! I teach subscribers how to do that.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of XLG 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.
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