Advertisement
If I buy a S&P500 or Nasdaq-100 ETF (eg CSPX or QQQ) today with a lump sum, would I be stuck with underlying company stocks 10 years later even if S&P500 or Nasdaq-100 composition changes along they way, say some companies kicked out and new ones accepted? I am assuming when we buy an ETF we are buying underlying stocks in proportion, and it seems unless I do DCA, I cannot benefit from any recomposition of the index holdings.
4
Discussion (4)
Learn how to style your text
Reply
Save
Write your thoughts
Related Articles
Related Posts
Related Products
4.7
658 Reviews
Endowus Cash Investments Portfolio
Equities, Bonds
INSTRUMENTS
0.25% to 0.60%
ANNUAL MANAGEMENT FEE
$1,000
MINIMUM INVESTMENT
N/A
EXPECTED ANNUAL RETURN
Web and Mobile App
PLATFORMS
4.7
1293 Reviews
3.9
142 Reviews
Related Posts
Advertisement
Nope. You will be buying the ETF and will hold only the ETF.
Hence, if the main S&P or NASDAQ changes their holdings, the ETF managers will change the holdings accordingly on their end. You will not be affected at all.
Hope this helps.