Buying VOO and shorting a few stocks is not for me.
As the Mag 7 combined are now ~ 35% of S&P500, VOO has become a less diversified investment. As a principle, I don’t like concentration. TSLA ’s valuation in particular is an outlier. Buying VOO and shorting TSLA (or any other) requires margin and the market could stay irrational longer than one can stay solvent. What if I just don’t own it?
I found XMAG is an ETF with full replication of S&P493 ( it excludes the Mag 7).
Fees are 0.35% so quite more than VOO 0.03% but lower than direct indexing, has no minimum and no headache of transferring assets to another brokerage. It rebalances quarterly. I see one drawback, it’s new and relatively small (67M in assets! ) The bid & ask spread yesterday was a few cents (17 bps). It’s pretty simple to add any of the Mag7 by adding individual stock(s).