• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Invest in ETFs

Exchange-traded funds have been gaining popularity in recent years. You can think of an ETF as a portfolio of stocks. Because ETFs trade on major exchanges, it’s very convenient for investors to buy and sell them.

And they come in particularly handy for index investors.

Case in point: the Nasdaq Composite is a market capitalization-weighted index of over 3,000 stocks listed on the Nasdaq Stock Market. It would be difficult for an investor to try to buy all the components individually to track the index.

With ETFs, investors can gain exposure to a large portfolio of stocks with a single transaction.

For instance, the Fidelity NASDAQ Composite Index ETF (ONEQ) aims to provide investment returns that closely correspond to the Nasdaq Composite. The index has climbed about 12% year to date and so has the ETF. The fund does charge a fee for providing this convenience: it has a net expense ratio of 0.21%.

Read more: Rich young Americans have lost confidence in the stock market — and are betting on these 3 assets instead. Get in now for strong long-term tailwinds

Elevate Your Investments with Moby

Gain a competitive edge with Moby's expert investing insights. Our data-driven analysis and personalized recommendations empower you to make smarter investment decisions. Enhance your portfolio and stay ahead of market trends. Start your journey to financial success today at Moby.

Get Started

Invest in Nasdaq heavyweights

Even though the Nasdaq Composite is made up of thousands of stocks, not every stock moves the index the same way. As mentioned earlier, the index is market cap-weighted. So big players tend to move it the most.

Indeed, at the end of 2022, the top three components of the Nasdaq Composite were Apple, Microsoft, and Amazon. They accounted for 12.19%, 10.54%, and 5.05% of the index’s weight, respectively.

If you want to pick Nasdaq stocks yourself, starting with the heavyweights may not be a bad idea — especially when Wall Street also sees upside in these names.

Apple: Apple (AAPL) is a tech behemoth. In the latest earnings conference call, management revealed that the company’s active installed base has surpassed two billion devices. Shares have climbed 25% year to date and Morgan Stanley analyst Erik Woodring sees more upside ahead. The analyst has an ‘overweight’ rating on Apple and a price target of $180 — around 14% above the current levels.

Microsoft: Software gorilla Microsoft (MSFT) is moving on the right track. In the December quarter, revenue grew 7% year over year on a constant currency basis. Mizuho Securities analyst Gregg Moskowitz has a ‘buy’ rating on Microsoft and a price target of $315, implying a potential upside of 17%.

Amazon: Amazon’s (AMZN) stock price performance hasn’t been stellar. Even though shares are up 13% in 2023, they are still down nearly 40% compared to a year ago. JPMorgan analyst Doug Anmuth sees a rebound on the horizon. The analyst has an ‘overweight’ rating on Amazon and a price target of $135 — roughly 39% above where the stock sits today.


This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.