My answer to I want to invest in Google via an ETF. Can anyone recommend a good one?
Answer by David L. Wright:
While Google (Alphabet) is a great company, but you never know what the future might hold. In 1924 and 1930, Sears and Eastman Kodak were respectively added to the Dow. They remained as powerhouse companies in the economy for decades. Neither would be considered as such today.
Since you don’t know if or when a company will decline, it’s safer to simply invest in the broad stock market. An invest in the SPY — the S&P 500 index — or the QQQ — the NASDAQ 100 — will give you a broad (read: safer) investment in the stock market.
Incidentally, today, Alphabet is the 2nd largest option in these investment vehicles.
SPY top holdings:
QQQ Top holdings:
You might notice that Alphabet has two classes of stock A and C. When you add those two classes together, you’ll notice that Alphabet is the second largest holding in both the S&P 500 index fund and the NASDAQ 100 fund.
Best of luck.