Strategies You Need to Know
The S&P 500, or Standard & Poor’s 500, comprises around 500 of the U.S.’s largest publicly traded companies and has historically delivered strong long-term returns.
Investing in the S&P 500, as a proxy for the market, feels like betting on the U.S. to win. But like any investment, the S&P 500 isn’t all growth and no groans.
Investors hoping to include the S&P 500 in their portfolios should learn the risks of the S&P 500, such as concentration and valuation risk, and what strategies can minimize that risk while still harnessing the S&P 500’s power in their portfolios.
Key Takeaways
- The S&P 500 is a major stock market index with inherent risks such as concentration and volatility.
- Concentration risk arises from the…
