The Stock Market May Have a Serious Problem -- 2 Brilliant Index Funds to Buy to Hedge Against the Risk

Core Insights - The U.S. stock market faces concentration risk, with the top 10 stocks in the S&P 500 accounting for nearly 40% of its market capitalization, which is the highest concentration in history [2][3] - High concentration is expected to lead to lower S&P 500 returns over the next decade compared to a less concentrated market, according to Goldman Sachs [3] Group 1: Invesco S&P 500 Revenue ETF - The Invesco S&P 500 Revenue ETF tracks all 500 companies in the S&P 500, weighting them based on trailing-12-month revenues and imposing a 5% weight cap on individual stocks [5] - The ETF's top 10 positions include Walmart (3.8%), Amazon (3.5%), and Apple (2.4%) [5][6] - The ETF demonstrated resilience during market downturns, declining 18% in 2022 compared to a 25% decline in the S&P 500 [6] - Over the last decade, the Invesco S&P 500 Revenue ETF returned 245%, underperforming the traditional S&P 500's 310% gain [7] - The ETF has a relatively high expense ratio of 0.39%, above the average of 0.34% for U.S. exchange-traded funds [8] Group 2: Invesco S&P 500 Equal Weight Technology ETF - The Invesco S&P 500 Equal Weight Technology ETF includes all 68 companies in the S&P 500 technology sector, with equal weighting for each stock [9] - This ETF avoids concentration risk while providing exposure to the technology sector, which has been the best-performing sector over the last decade [10] - The Invesco ETF achieved a total return of 468% over the previous decade, significantly outperforming the S&P 500's 310% return [11] - The technology sector is expected to grow, with predictions that it will account for 75% of the U.S. market cap by 2030 [11] - The ETF has a relatively high expense ratio of 0.4%, meaning shareholders will pay $40 annually on every $10,000 invested [12]