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Some of the largest companies in the world, including Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), and Nvidia (NVDA), are part of the technology sector. These tech stocks have generated game-changing wealth for shareholders over the last two decades.
But identifying long-term winners is quite a challenging task, as just a handful of stocks tend to drive the majority of broad-market returns over time. So, it may be preferable to invest in exchange-traded funds (ETFs) that offer diversification at a relatively low cost. Investing in low-cost ETFs can provide exposure to several companies, reducing your overall risk profile in the process.
