When the market feels more like a rollercoaster than an enjoyable climb, investors should get back to the basics and focus on long-term returns. The S&P 500 Index tracks the top 500 largest American companies, and it is considered the gold standard of the stock market.
Financial experts have long counseled that by exposing your portfolio to the S&P 500, you can take advantage of the diversification and growth opportunities that come with incorporating the biggest players in the U.S. into your portfolio. Some of the biggest companies in the S&P 500 include Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT). “Investing in mutual funds and ETFs allows you to diversify your portfolio, and while it’s not glamorous to talk about, it’s an investment strategy that has worked well for millions of people,” said Jennifer Weber, advisor at Weber Assets.
