I would like an ETF, ideally, that excludes FAANG and most tech in general.
My thought was if an ETF existed that excluded top 10 or so of S&P500, as an example.
Idea is that going into a recessionary environment, and with inflation likely have peaked, the narrative will switch from “rising inflation” to “persistent inflation in face of a recession” and I think your typical non-SaaS companies out there in the world will cut costs, do layoffs, and in general get negative headlines and smacked around by market.
“Hey dummy - have you seen the markets this year…most stuff down!”
Thanks. I hadn’t noticed.
Seriously though, look at difference between DIA and QQQ as an example and SPY is sort of in-between.
I still get a bit of tech in the DIA index though.
Fun fact I realized a few years back, was that something like 50% of S&P500 companies from a few decades back are either out of biz and/or out of the index. They don’t all succeed. Either they get disrupted, they get mismanaged, or they suffer too much in an economic downturn (my assumptions).
Anyway…so if you have ideas of any ETFs that have held up a bit better than most this year, and which aren’t FANG/Cloud/Tech-heavy, let me know.
“Does this mean you think tech ready to launch?”
It means I don’t want the volatility that tech brings, where it can go up 20-40% in a month. I want something slow and steady that is likely to bleed in the same manner, to put on a larger short until we know for sure this bear market is over and turning the corner.
Welcome suggestions!
Dreamer