![How to Find Low-Competition Keywords with Semrush [Super Easy]](https://static.semrush.com/blog/uploads/media/73/62/7362f16fb9e460b6d58ccc09b4a048b6/how-to-find-low-competition-keywords-sm.png)
This ETF Might Look Like a Clever New Way to Invest in the Nasdaq-100, but Don't Outsmart Yourself
When most investors think of a market index, the S&P 500 (SNPINDEX: ^GSPC) probably comes to mind. That makes sense since it is the go-to measure of broad stock performance. But there are other indexes and different flavors of the same basic index. It can get confusing, so make sure you don't outsmart yourself. That's a real risk with the Nasdaq-100 and this nuanced exchange-traded fund (ETF) variation.The Dow Jones Industrial Average (DJINDICES: ^DJI) was probably the first index that investors followed closely. It is tragically flawed because it effectively weights the index's constituents by stock price. So the highest-priced stocks have the biggest impact on the index's performance. It's not an ideal methodology if you want to gauge the market's overall performance or the economy's health.Image source: Getty Images.Continue reading
When most investors think of a market index, the S&P 500 (SNPINDEX: ^GSPC) probably comes to mind. That makes sense since it is the go-to measure of broad stock performance. But there are other indexes and different flavors of the same basic index. It can get confusing, so make sure you don't outsmart yourself. That's a real risk with the Nasdaq-100 and this nuanced exchange-traded fund (ETF) variation.
The Dow Jones Industrial Average (DJINDICES: ^DJI) was probably the first index that investors followed closely. It is tragically flawed because it effectively weights the index's constituents by stock price. So the highest-priced stocks have the biggest impact on the index's performance. It's not an ideal methodology if you want to gauge the market's overall performance or the economy's health.
Image source: Getty Images.
