S&P 500 Index Funds

What is the S&P 500 index?

The S&P 500 index is a stock market index that measures the performance of the top 500 American companies.

What is an S&P 500 index fund?

An S&P 500 index fund is a type of mutual fund that buys stock in the companies on the S&P 500 index.

Why are S&P 500 index funds considered a good place to invest?

S&P 500 index funds are considered a good place to invest because the S&P 500 index accounts for 80% of the stock market's value and is considered the best gauge of the stock market.

What does it mean for an index fund to perform no worse?

<p>When an index fund performs no worse, it means that its performance will be at least as good as the performance of the index it tracks (in this case, the S&P 500 index).</p> Signup and view all the answers

Why is the S&P 500 index important in the investing industry?

<p>The S&P 500 index is important in the investing industry because it is widely considered as the best single gauge of the stock market's performance.</p> Signup and view all the answers