facebookIf I buy a S&P500 or Nasdaq-100 ETF (eg CSPX or QQQ) today with a lump sum for long term, would I be stuck with underlying company stocks and their performance even if some perform poorly later? - Seedly

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Adam

02 Jan 2022

βˆ™

Stocks

If I buy a S&P500 or Nasdaq-100 ETF (eg CSPX or QQQ) today with a lump sum for long term, would I be stuck with underlying company stocks and their performance even if some perform poorly later?

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.

Discussion (4)

What are your thoughts?

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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.

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