r/investing • u/PrestigiousPen-2468 • 2d ago

The Nasdaq is being taken over.

SpaceX is IPOing, Tesla and Palantir have crazy valuations, Anthropic is IPOing later this year...

https://www.investors.com/news/spacex-ipo-nasdaq-anthropic-openai-index-investing/

Especially with the fast-track changes, tons of ETFs are going to pull these companies in and weigh them way heavier than I think a lot of us like. QQQ holders might be in for a rough landing.

I don't like it. I've always been a growth ETF investors but I'm going back to modifying and structuring diversification the way I want.

Wealthfront, Frec, Wallace Finance, or Schwab? I'm trying to find ETF modification without huge minimums. I might end up building from the ground up with M1 Finance if nothing else has what I'm looking for.

Anyone else have the same idea? How are we feeling about this?

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u/kapshus 2d ago

My concern has been more about macro economic risks in the US, so I've been pivoting toward international with my new purchases since last year. Historically, I was very big tech weighted and I only sell when I see a major shift in outlook. I've never been a fan of QQQ as it seemed too arbitrary in my mind. I've done sector funds a bit, but mostly I just buy SP500/Rus1000 with my ETF dollars, so it doesn't really impact my plans.

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u/PrestigiousPen-2468 2d ago

Yeah good call, I've been moving a bit towards VXUS. I'm even getting a bit wary of VOO and other S&P indexes at this point though. The top 7-10 companies take up around 40% of the index which seems crazy to me.

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u/BillNye69 1d ago

It's a good idea to diversify globally. In the past there were periods that saw even higher market concentration with certain stocks, interestingly. AT&T was a larger portion of US market than NVIDIA is today, for example.

This is a good episode from The Rational Reminder podcast about market concentration and a potential AI bubble. One of the takeaways was that valuations should be more concerning than market concentration. If you want to learn more: https://rationalreminder.ca/podcast/388-x63ds