S&P500: Investing in an S&P500 Index Fund!
The S&P500 is an important ingredient to any stock portfolio. It represents 500 of the largest public companies across industries in the US.
What are the S&P 500 Companies?
The S&P 500 tracks the 500 largest publicly traded companies in America. It is weighted by the market cap of each company. Top companies include Apple (6.18%), Microsoft (5.74%), Tesla (1.36%), JP Morgan (1.25%).
S&P500 is well diversified by industry. Technology = 27.40%. Finance Banks = 11.30%. Energy is 3.00%. This helps manage risk in many market environments.
Performance
The S&P 500 averages approximately 8.0% returns. However this varies from year to year. During the worst recessions, the S&P 500 dropped 34-40% in 1931, 1938, 1975, 2008. However, since 1957 the median return has been ~8.0%.
How to Invest!!
There are 3 excellent Exchange Traded Funds that invest in all S&P 500 companies: VOO (Vanguard), IVV (BlackRock) and SPY (SPDR). All 3 have affordable fees for under 0.10%. Here’s a screenshot of all 3:
VOO: 0.03% Fee https://investor.vanguard.com/etf/profile/VOO
IVV: 0.03% Fee https://www.ishares.com/us/products/239726/ishares-core-sp-500-etf
SPY: 0.09% Fee https://www.ssga.com/us/en/institutional/etfs/funds/spdr-sp-500-etf-trust-spy
For FREE Chinese, Korean translation to find a brokerage, schedule a FREE call here!