Large-cap companies—those with market caps larger than $10 billion and up to more than $1 trillion—are usually companies with established brands and strong balance sheets.
This makes them less volatile than smaller startups that have yet to make a name for themselves or turn a significant profit. Large-cap stocks also have more interest from analysts and the media, allowing investors to make better decisions on whether to buy, sell or hold.
Obviously, these Wall Street giants offer investors a multitude of benefits. However, if you’re looking to simplify your approach, you could choose to invest in large-cap ETFs instead.
There’s no such thing as a sure thing when it comes to investing, though. Whether it’s once-dominant retailers like Sears that folded thanks to e-commerce pressures or big banks like Wachovia and Lehman Brothers that disappeared in the 2008 financial crisis, there are plenty of examples of multi-billion-dollar stocks that weren’t particularly “safe” in the long run.
For large-cap ETFs, as with all investments, it’s up to each investor to think critically and make informed decisions about where to put their hard-earned cash. But to get you started, we’ve ranked seven of the best large-cap ETFs to provide options to those who are looking to invest in the biggest companies on Wall Street.
