The Smartest Index ETF to Buy With $100 Right Now
When it comes to investing in exchange-traded funds (ETFs) that track an index, the most popular by far are ones that aim to replicate the performance of the S&P 500, such as the Vanguard S&P 500 ETF and SPDR S&P 500 ETF Trust. In fact, the three largest ETFs based on assets under management all track the index.There is a good reason for this. The S&P consists of around the 500 largest companies traded in the U.S. based on market capitalization, and the index is considered the benchmark for the U.S. stock market. It's been a strong performer over the long term, and few professional fund managers have been able to consistently outperform the index over a long period.One of the keys to the success of the S&P 500 is that it is a market-cap weighted index that lets its winners run and become a larger percentage of the index as the stocks outperform and their market caps grow. This is how stocks like Apple, Microsoft, and Nvidia have grown to become the largest in the index.Continue reading
When it comes to investing in exchange-traded funds (ETFs) that track an index, the most popular by far are ones that aim to replicate the performance of the S&P 500, such as the Vanguard S&P 500 ETF and SPDR S&P 500 ETF Trust. In fact, the three largest ETFs based on assets under management all track the index.
There is a good reason for this. The S&P consists of around the 500 largest companies traded in the U.S. based on market capitalization, and the index is considered the benchmark for the U.S. stock market. It's been a strong performer over the long term, and few professional fund managers have been able to consistently outperform the index over a long period.
One of the keys to the success of the S&P 500 is that it is a market-cap weighted index that lets its winners run and become a larger percentage of the index as the stocks outperform and their market caps grow. This is how stocks like Apple, Microsoft, and Nvidia have grown to become the largest in the index.
