He noted the total-market ETF isn’t disproportionately impacted by a handful of stocks. “Vanguard Total Stock Market Fund is low cost ownership and is instant exposure to the long side of equities with very little – I would go so far as to say no – single stock risk,” Ritholtz said in the Forbes interview. Conversely, he said the PowerShares QQQ (NasdaqGM: QQQ), which tracks the Nasdaq-100 Index, has large stakes in Apple (NasdaqGS: AAPL) and Google (NasdaqGS: GOOG) that tend to overwhelm the other stock holdings.
“We’ve played around with a handful of other names,” Ritholtz said, mentioning SPDR S&P Dividend ETF (NYSEArca: SDY), a basket of dividend stocks.
“Some of the more conservative portfolios wanted to have access to dividends,” he said. “In a conservative way, that’s been a nice holding for us. It’s worked out well.”
SPDR S&P Dividend ETF
