Buying an S&P 500 index fund has long been considered an easy way to gain broad market exposure and diversification.
In the past, the largest sector in the S&P 500 has typically made up less than 20% of the index.
As a result, when investors buy the S&P 500 index, they become overexposed to growth by default.
That's where value investing comes in, he said, as value stocks provide diversification on both fronts.
Growth stocks are mainly found in the technology, consumer discretionary, and communication services sectors," Jesch wrote in a recent note.
Persons:
Tony DeSpirito, DeSpirito, that's, they've, it's, aren't, Björn Jesch, they'll, Jesch, Rowe
Organizations:
BlackRock, Big Tech, DWS, Nvidia, Investors
Locations:
BlackRock