IWM Outperforming QQQ: A Valuable Lesson for ETF Investors
In a recent market trend, the iShares Russell 2000 ETF (IWM) has been outperforming the Invesco QQQ Trust (QQQ). This shift in performance serves as a valuable lesson for ETF investors.
The IWM, which tracks small-cap stocks, has been topping the QQQ, which follows the Nasdaq-100 index. This contrast highlights the importance of diversification within an ETF portfolio.
While the QQQ may have been a popular choice due to its tech-heavy holdings, the recent outperformance of the IWM showcases the benefits of investing in a broader range of sectors and market caps.
ETF investors can learn from this trend by considering a mix of different ETFs in their portfolio to mitigate risk and potentially capitalize on different market opportunities.
Overall, the IWM’s success over the QQQ serves as a teachable moment for ETF investors, emphasizing the importance of diversification and staying informed on market trends.