Warren Buffett's S&P 500 Advice May Not Be as Relevant as It Once Was

Warren Buffett's advice to invest in the S&P 500 may be tricky to follow due to the index's concentration in tech stocks. The top 10 holdings of the S&P 500 are dominated by tech companies, with only Berkshire Hathaway being the exception. A more balanced alternative is the Invesco S&P 500 Equal Weight ETF, which offers a more diversified portfolio.

Broadcom (AVGO) has emerged as one of the top-performing stocks in the S&P 500 index over the past week, rising by 20% and hitting a record high. This surge is attributed to the semiconductor manufacturer's strong third-quarter financial performance, which beat analysts' estimates for revenue and earnings. Additionally, Broadcom's announcement of a $10 billion order in artificial-intelligence (AI) semiconductors from OpenAI further boosted investor confidence Broadcom AVGO is the Best Stock in S&P 500, Up 20% in 1 Week^[1].

The company's AI revenue jumped by 63% to $5.2 billion in Q3, with expectations of reaching $6.2 billion this quarter. Broadcom's robust fourth-quarter guidance of $17.4 billion in revenue and its diversified business, including the successful acquisition of VMware, position it well for the next phase of the AI boom. Analysts are divided on the stock's potential price movement, with some setting price targets below the current market price of $350 and others anticipating growth beyond today's price Broadcom AVGO is the Best Stock in S&P 500, Up 20% in 1 Week^[1].

Investors seeking a more balanced exposure to the S&P 500 can consider the Invesco S&P 500 Equal Weight ETF (RSP). Launched on April 24, 2003, this passively managed exchange-traded fund aims to provide broad exposure to the Large Cap Blend segment of the US equity market. The ETF has amassed assets over $74.87 billion and has an annual operating expense ratio of 0.2%, making it a cost-effective option. It has a 12-month trailing dividend yield of 1.15% and a beta of 0.99, indicating a lower risk profile compared to the S&P 500. The ETF's top holdings include Generac Holdings Inc (GNRC), Arista Networks Inc (ANET), and Advanced Micro Devices Inc (AMD), among others. Performance-wise, RSP has added about 8.72% so far this year and was up about 10.26% in the last one year (as of 09/15/2025) Should Invesco S&P 500 Equal Weight ETF (RSP) Be on Your Investing Radar?^[2].

In conclusion, while Warren Buffett's advice to invest in the S&P 500 remains valid, the index's concentration in tech stocks may not align with all investors' risk profiles. The Invesco S&P 500 Equal Weight ETF offers a more diversified portfolio, providing investors with a balanced exposure to the Large Cap Blend segment of the US equity market.