Should You Invest in ETFs or Just Own Shares of Nvidia, Apple, and Microsoft?

Investing in exchange-traded funds (ETFs) can provide you with some great diversification. But sometimes those ETFs can have significant exposure to just a few stocks, which negates the benefit of investing in ETFs for the purposes of diversification in the first place. And when you find a top-performing ETF that's doing extremely well, that's what you'll often find: It's doing well due to a few large positions.If you're investing in growth or tech-focused funds, you'll often find that tech giants Nvidia, Apple, and Microsoft make up considerable positions in those ETFs.For example, the Invesco QQQ Fund has risen by around 150% in the past five years. The Technology Select Sector SPDR Fund is up by 170%. You might think that these are phenomenal investments that can also give you some terrific diversification to keep your risk down. But is that really the case?Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool