28. $AAPL Stock Impacts & Tools to Compare ETFs ($VOO vs $VTI)

Mar 8, 2024

Dive into the intriguing world of $AAPL stock and why it's down while the S&P 500 rises. Discover the significance of market capitalization and the challenges Apple faces in a competitive landscape. Learn how to effectively compare ETFs like $VOO and $VTI using a handy tool, examining their composition, performance, and risk metrics. The hosts break down dividends and investor objectives, helping you decide which fund might align best with your goals. Tune in for valuable insights and market analysis!

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INSIGHT

From Narrow To Broad Rally

Last year a handful of mega-cap tech stocks (the 'Magnificent Seven') carried the market in a narrow rally.
This year the rally broadened beyond those few names, reducing single-stock dominance.

ADVICE

Use Fund Tools And Read The Prospectus

Use a brokerage's fund tools to compare ETFs side-by-side before investing.
Read the fund's investment objective and prospectus to understand what the ETF tracks.

INSIGHT

Different Indexes, Similar Sector Mix

VOO tracks the S&P 500 while VTI tracks the entire U.S. stock market, so VTI holds many more securities.
More holdings (VTI ~3,749) don't automatically mean very different sector exposure from VOO.

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Let's talk about what's going on with the $AAPL stock and also learn how to compare ETFs, like $VTI vs $VOO, with a tool! You'll want to watch the video about 10 minutes in, but if you can't watch it, we do describe everything we're analyzing.

$AAPL Stock Is Down, But The Market Is Up?

We know that Apple is one of the biggest stocks or companies in the S&P 500, which is the index we use to measure the stock market (check out episode 2), so then how is $AAPL down 8% and the S&P 500 is up 8% year to date (March 7, 2024)?

Jargon Breakdown:

Here's a refresher on Market Capitalization
Magnificent 7 = Alphabet (NASDAQ: GOOG; GOOGL), Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla
Indices/Index: The big 3 (S&P 500, NASDAQ, Dow Jones) are how we measure the stock market, but we mainly look at S&P 500 to see how the market is doing
ETF = exchange traded fund (we have an episode on ETFs and Mutual Funds if you want a refresher).
Fiscal Policy - the government using taxation and spending to influence the economy. We also talk about the CHIPS Act in regard to how fiscal policy can affect stock price.

How to Compare ETFs or Other Securities

Let's say you want to compare 2 different ETFs that you're interested in investing, which have similarities. We'll compare $VTI and $VOO ETFs using Merrill's Fund Story. You do have to have a Merrill account to use this tool. FINRA also has a free tool you can use called

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