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What You Should Know About the S&P 500 Before You Invest

admin by admin
November 27, 2021
in Investing
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What You Should Know About the S&P 500 Before You Invest

Investing money is really only an investment when you make a return back on what you spent — so what better place to start than by choosing the biggest and most profitable companies?

Blue-chip companies, or well-established household brand names, are easiest to invest in via the popular index fund known as the Standard and Poor’s 500, or the S&P 500. It tracks the performance of the 500 biggest companies according to market cap.

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Index funds have become one of the most popular ways to invest thanks to their cost-effective way to diversify one’s holdings across broad sectors or industries. Buying one share of the S&P 500 index fund equates to buying tiny shares of the top 500 blue-chip companies in the United States with a single transaction.

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