# Is the S&P 500 Fund Really the Best Choice?

You may have heard that Buffett recommends low-fee S&P 500 index funds (VOO), but this article aims to expose a truth: **The S&P 500 is actually hijacked by the "big five".**

The data is quite shocking - the five stocks of Nvidia, Microsoft, Apple, Amazon, and Meta account for only 1% of the 500 companies but represent 28% of the entire index. In other words, when these 5 stocks perform well, the entire fund rises in tandem; once they falter, the entire index has to drop along with them. This is called market capitalization weighting, which sounds scientific, but in reality, it is **highly concentrated risk**.

Are there more balanced options? Yes – **Invesco Equal Weight ETF (RSP)** is designed to address this issue. It gives equal weight to 500 companies, with each accounting for only 1-2%. What are the benefits of this? **When small companies outperform large companies, this fund can actually outperform the S&P 500**.

Over the past 15 years, the S&P 500 has outperformed 88% of active funds, which is quite impressive. But the question is: **Are you buying 500 companies, or are you buying those 5 giants?**