Diversification is key for any portfolio. One part of the portfolio that typically gets overlooked is large-cap growth allocation. International, value and small-cap allocations are all important aspects of a portfolio — but they can garner so much attention that maintaining a suitable large-cap growth investment can become an afterthought.
Large-cap investing refers to investing in companies that are larger in size, typically measured by the market capitalization (“market cap”) of the company. The company’s market cap is simply the shares available to trade multiplied by their price. Larger companies, typically referred to as blue chip, traditionally are more global in nature, offer more diverse product offerings and come under a higher level of investor scrutiny.
Growth investing includes buying companies that are expected to grow sales, profits or cash flows faster than other companies. Typically these companies are focused on investing in themselves to expand and innovating new ways grow their business. This might mean hiring more employees, buying more equipment or conducting more research and development. For those who need to evaluate their large - cap growth allocation, you may want to consider Invesco QQQ.This large - cap growth ETF provides exposure to large, global growth companies through its underlying index, the Nasdaq - 100. Since 2008, the Nasdaq - 100 has generated higher growth rates across revenue, earnings and dividends than both the S & P 500 Index and the Russell 1000 Growth Index.