How to Start Investing in the S&P 500 Today
Investors can invest in the S&P 500 through index funds or ETFs that follow the index, and choose a taxable brokerage account, a 401(k), or an IRA. The S&P 500 Index tracks the largest companies in the United States based on market capitalization.
The S&P 500 Index was launched in 1957 as the first U.S. market-cap-weighted equity index and is considered the best single gauge of large-cap U.S. equities.
Here’s everything you need to know to unlock it’s investing power:
Key Takeaways
- The S&P 500 tracks the largest U.S. companies based on market capitalization.
- An S&P 500 Index fund can help investors gain broad exposure to the constituent stocks in the S&P 500 index.
- Mutual funds and ETFs maintain a strategy of passive index…
