Overview
- The S&P 500 and the Vanguard S&P 500 ETF remain close to record highs after a brief slide in recent days.
- Recent weakness reflects worries about lofty tech valuations and a potential AI-driven bubble, compounded by a prolonged shutdown that limited fresh economic data.
- VOO tracks the S&P 500 across 11 industries and is regularly rebalanced, though technology currently carries the heaviest weight.
- Leading tech names such as Nvidia and Broadcom have propelled gains, while stock-level moves remain uneven, with Palantir down this month yet up about 120% year to date.
- ETFs offer instant diversification and trade like stocks, and investors are advised to favor funds with expense ratios below 1% to limit fees.