Could moving money out of S&P 500 index funds<\/a> be a good move for retirees to make right now?<\/p>\n The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) tracks the S&P 500, and the one thing that stands out when looking at the exchange-traded fund (ETF) is how much exposure it has to tech. Roughly 38% of its holdings are in the tech sector<\/a>. And all of its top 10 holdings are involved in tech and have exposure to artificial intelligence (AI). If the AI bubble bursts, the fund could have tremendous downside risk.<\/p>\n The diversification the S&P 500 offers can also be a bit misleading, as the communication services sector, which accounts for about 10% of the index, includes stocks investors might consider tech-related, such as Alphabet and Meta Platforms. Thus, the overall risk and exposure to tech in the S&P 500 may be higher than it appears to be at first glance.<\/p>\n Investors can look to other options to reduce risk <\/p>\n While the S&P 500 might seem like the default option for long-term investing, there are plenty of other investments to consider. ETFs that focus on dividends and value stocks, for instance, make for more practical investments. The Schwab U.S. Dividend Equity ETF is a terrific example of a fund that may be more suitable for retirees and risk-averse investors, as it focuses on safe dividend stocks and offers a solid yield of around 3.3%.<\/p>\n Taking money out of S&P 500 index funds and putting it into safer funds and investments may be a prudent move for retirees to make right now, and it can be an effective way to drastically reduce your overall risk.<\/p>\n Should you buy stock in SPDR S&P 500 ETF Trust right now? <\/p>\n Before you buy stock in SPDR S&P 500 ETF Trust, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and SPDR S&P 500 ETF Trust wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $439,038!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,277,804!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 942% \u2014 a market-crushing outperformance compared to 206% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of June 10, 2026. <\/p>\n David Jagielski, CPA<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2026\/06\/144448ec73fee5db136875879b7774d0.jpeg\")
Image source: Getty Images. Why the S&P 500 looks risky <\/p>\n