These ETFs could help investors reduce Big Tech exposure

cnbc.com:

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Big Tech's market dominance may push more investors to equal-weight exchange-traded funds, according to VettaFi's Todd Rosenbluth.

«Investors are getting nervous that too much money is concentrated in a handful of stocks within the broader ETFs that they have available that [are] tied to the S&P 500 or even the Nasdaq 100,» the firm's head of research told CNBC's "ETF Edge" earlier this week.

Rosenbluth lists the Invesco S&P 500 Equal Weight ETF and the Invesco S&P 500 Equal Weight Technology ETF as options for investors who want to reduce exposure to the "Magnificent Seven."

«You own the same companies that you'd find within the S&P 500 or in the technology sector. But instead of being dominated by Apple and Microsoft and Nvidia, you spread that risk around to the other companies,» Rosenbluth said. 

Ahead of this week's earnings from five of the Magnificent Seven names, BNY Mellon's Ben Slavin noted flows have been sluggish into the group so far this year. Meanwhile, he found «less-loved» market groups including financials and parts of real estate grabbing interest.

«In our conversations with advisors, [they're] looking for somewhere else to go and are starting to get nervous based on [Big Tech] valuations,» the firm's global head of ETFs said.

CNBC's Magnificent 7 Index, which is comprised of Apple, Alphabet, Meta, Microsoft, Amazon, Nvidia and Tesla, soared almost 6% Friday. The index is up 68% over the past 52 weeks.

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