The top 10 stocks make up nearly 40% of the S&P 500's value, up from 17% in 2015 and the highest level since the mid-1960s. The article notes that the Vanguard S&P 500 ETF (VOO) has over 39% of its value in its top 10 holdings, led by Nvidia at 8.4%. It presents the Schwab International Dividend Equity ETF (SCHY), which tracks the Dow Jones International Dividend 100 Index of 100 high-yielding dividend stocks outside the U.S., as a complement, with 3.4% technology exposure versus 39.7% for VOO and a yield of about 3.7% versus about 1% for VOO. The article also flags SCHY's trade-offs: lower-growth holdings, top 10 holdings at 40% of its value, and foreign exchange risk. The author argues that adding SCHY could bring international diversification, extra dividend income and exposure to businesses less tied to the big tech giants.
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