![\"A](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/06\/1781101694_639_.jpeg\"\/)
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Image source: Getty Images.<\/p>\n
Why the S&P 500 looks risky<\/p>\n
The SPDR S&P 500 ETF Trust (SPY<\/a> +0.04%) 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 Today’s Change<\/p>\n (0.04%) $0.28<\/p>\n Current Price<\/p>\n $737.33<\/p>\n Key Data Points<\/p>\n Day’s Range<\/p>\n $731.51 – $737.59<\/p>\n 52wk Range<\/p>\n $591.89 – $760.40<\/p>\n Volume<\/p>\n 851.5K<\/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 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","protected":false},"excerpt":{"rendered":"If you’re in or near retirement, a top investing priority is likely going to be preserving the capital…\n","protected":false},"author":2,"featured_media":485835,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[114,268,85,46,266,267],"class_list":["post-485834","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-il","tag-israel","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/485834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=485834"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/485834\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/485835"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=485834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=485834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=485834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"SPDR](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/06\/1781101695_782_.png\"\/)
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