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.
Learn how to style your text
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.
Write your thoughts
STOCK HOLDING TYPE
Product ReviewsCredit CardsOnline BrokeragesRobo-AdvisorsCrypto ExchangesSavings AccountsBroadbandRemittance Product Sitemap