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IWM Topping QQQ: A Teachable Day for ETF Investors – etf.com

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.

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