The Nasdaq and the 澳洲幸运5官方开奖结果体彩网:New York Stock Exchange (NYSE) are two American stock exchanges that trade securities. These two marketplaces account for the majority of trading that takes place not only in the United States but around the world. Cꦇompanies list their shares on thes☂e exchanges so investors can make trades. But did you know you can invest in the exchanges as well?

There are a couple of w𒆙ays yoꦿu can do so. The most common ways are to:

• Invest in the companies that own these exchanges, both of which are public companies. Nasdaq shares trade under the ticker symbol NDAQ on the Nasdaq. The NYSE is owned by Intercontinental Exchange Group, which trades under the ticker symbol ICE on the NYSE.
• Purchase shares of the 澳洲幸运5官方开奖结果体彩网:exchange-traded funds (ETFs) that track the indexes on these two stock exchanges. While you can't purchase shares in the indexes of these exchanges, the ETFs that track them try to mirror their performance.

In this article, you'll learn more about two of the most widely-held ETFs that track the 澳洲幸运5官方开奖结果体彩网:Nasdaq 100 Index and 澳洲幸运5官方开奖结果体彩网:Dow Jones Industrial Average Index (DJIA).

Nasdaq and New York Sto🌄ck Exchange (NYS🌺E): An Overview

Nasdaq

The Nasdaq was founded in 1971 to enable investors to trade 澳洲幸运5官方开奖结果体彩网:securities on a speedy, transparent computerized system. It is the world's first all-electronic exchange and operates 29 markets in stocks, 澳洲幸运5官方开奖结果体彩网:fixed income, commodities, and derivatives in the U.S., Canada, the Baltics, and Scandinavia. There are more than 3,900 companies listed on the exchange. The majority of these corporations are in the technology sector, including Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN) among others.

New York Stock Exchange (NYSE)

The NYSE was founded in roughly 1792 when 24 brokers signed what is known as the 澳洲幸运5官方开奖结果体彩网:Buttonwood Agreement, setting some agreed-upon ground rules for securities trading. It is based in New York City and is the largest equity-based exchange in the world. The exchange lists more than 2,300 companies that represent a variety of different sectors, including energy, utilities, financials, and industrials among others.

Investing in the Exchanges

As noted above, there are a few way🦋s you can invest in these stock exchanges: Purchasing shares ꦓin the companies that own them and buying shares in the funds that track them.

Buying Shares in Corporate Stock

The fact that you can invest in the public companies that own both exchanges doesn't mean that you should. Each company needs to be evaluated on its own merits and compared against your unique needs, goals, and risk tolerance—the same way you would with any other company.

澳洲幸运5官方开奖结果体彩网:Before you invest in any stock, review all relevant company information. You can find important details about the financial health and progress of a company by examining its 澳洲幸运5官方开奖结果体彩网:balance sheet, income statement, 澳洲幸运5官方开奖结果体彩网:cash flow statement, and footnotes through the annual report or 10-K. The 10-K report must be published as per the 澳洲幸运5官方开奖结果体彩网:Sec✱urities and Exchange Commission (SEC) and can be found on individual company websites or on EDGAR, the SEC's public database.

Once you complete your analysis, determine the potential return and 澳洲幸运5官方开奖结果体彩网:volatility of the stock and whether that fits your profile. You may also want to consider how the stock fits into your portfolio. Most investors seek a d🥂iversified portfolio with the hope of achieving a target return while taking on the least amount of risk.

Having a more concentrated 澳洲幸运5官方开奖结果体彩网:portfolio increases the🅰 risk of a big loss, but it also increases your total return potential. A stock's risk and return profile affects the total portfolio's risk and return profile, though by moving in the opposite direction of other holdings, a risky stock has the potential to make an overall portfolio less risky.

Individual Stocks vs. Index Funds

澳洲幸运5官方开奖结果体彩网:Modern Portfolio Theory (MPT) advocates diversification to reduce your risk. It can be difficult to properly diversify a portfolio when picking stocks one at a time. One easy way t🌄o overcome that challenge and diversify is to invest in a mutual fund or an ETF that tracks a larger index fund.

As noted above, there are a few ETF options out there that can help you be🌌nefit from investing in these exchanges. While many ETFs have stocks from both exchanges, the following ETFs can help you track the performance of some of the main indexes of these exchanges.

Nasdaq is tracked by the QQQ ETF, which contains some of the most widely held stocks on the Nasdaq. The DIA ETF tracks the DJIA, one of the most widely followed indexes on the NYSE.

Invesco QQQ

The Invesco QQQ (QQQ) tracks stocks within the Nasdaq-100 Index and is one of the most popular ETFs. The index includes 100 of the largest domestic and international nonfinancial companies that are listed on the Nasdaq Stock Market. The QQQ ETF has an expense ratio of 0.20% and a 澳洲幸运5官方开奖结果体彩网:market value of $155.75 billion.

Sector Weighting

QQQ has about half of its holdings that belong to the information technology sector, with more than 80% of the ETF being from three sectors. As such, it's not as diversified as other ETFs. Some of the sectors that are represented in the fund as of May 31, 2022, along with their weightings, include:

• Information Technology: 49.87%
• Communication Services: 17.19%
• 澳洲幸运5官方开奖结果体彩网:Consumer Discretionary: 15.40%
• Consumer Staples: 6.52%
• Health Care: 6.37%
• Industrials: 3.32%
• Utilities: 1.34%
  

Top 10 Holdings

Below are the top 10 stocks within the QQQ ranked by the percentage of their portfolio weighting.

Performance

Below is the performance of the Invesco QQQ over the last few years:

SPDR Dow Jones Industrial Average ETF Trust

The SPDR Dow Jones Industrial Average ETF Trust (DIA) tracks companies in the DJIA, which are chosen by a committee of editors from the Wall Street Journal. The 30 companies within the index must be substantial and represent a significant amount of U.S. economic activity. The fund has an expense ratio is 0.16% and over $26.81 billion in 澳洲幸运5官方开奖结果体彩网:assets under management (AUM).

Sector Weighting

Some of the sectors that are represented in the fund as o🧸f ꧃June 23, 2022, along with their weightings, include:

• Health Care: 21.80%
  
• Information Technology: 21.17%
• Financials: 15.07%
  
• Consumer Discretionary: 13.47%
• Industrials: 13.26%
  
• 澳洲幸运5官方开奖结果体彩网:Consumer Staples: 7.92%
• Communication Services: 3.15%
• Energy: 3.06%
• Materials: 1.10%
  

Top 10 Holdings

Below are the top 10 stocks within the DIA ranked by the percentage of their portfolio weighting.

Performance

Below is the performance of DIA over the last few years as of May 31, 2022.