Even investors who only keep casual tabs on the stock market probably know most of its recent gains have been driven by -listed stocks such as Microsoft and Nvidia. Indeed, all seven of the so-called "Magnificent Seven" stocks leading the charge throughout the past few years are Nasdaq names. This dynamic makes an exchange-traded fund (ETF) like the Invesco QQQ Trust (NASDAQ: QQQ) a compelling prospect, since it's built to mirror the Nasdaq-100 index, which means it holds a sizable stake in all seven of these market-beating tickers.

However, before diving into such a pick because it's overloaded with a particular exchange's hottest listings, consider an alternative that might make more sense to step into at this time. The Invesco S 500 Equal Weight ETF (NYSEMKT: RSP) sidesteps almost all of the problems the Invesco QQQ Trust poses to investors right now.

An exchange-traded fund is simply a basket of stocks with at least one common characteristic.

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Source Fool.com