Last Updated on May 15, 2023 by Umer Malik
There are few investment opportunities as well known globally as the stocks of the S&P 500. Investing in the S&P 500 stocks is one of the safest and most stable investments you can make.
Poor’s Publishing merged with the Standard Statistics Bureau back in 1941 and began tracking first the 90 companies and, later, the 500 largest and best-performing companies in the American stock market. The S&P 500 composite index has grown to become a benchmark that has significantly outperformed other investment vehicles around the world.
The S&P 500 computes a weighted average of the stocks that constitute the index. Therefore, the stocks with a larger market valuation have a greater effect on the overall index, providing more stability to investors.
Diversification is Key
Another one of the attractive aspects of the S&P 500 is its diversification. Not only do the companies listed read like a who’s who of American business, but they represent a balanced diversity of some of the most stable companies in the world’s recognised industries. From the tech world, you have names including Microsoft, Adobe Incorporated, and Apple. You have names such as Chevron and ConocoPhillips from the world’s oil producers. And from banking, companies including JP Morgan Chase & Co., Goldman Sachs Group Inc., and Charles Schwab Inc. grab investors’ attention.
The list of companies in the index spans aviation, household products, pharmaceutical industries, and much more. They all contribute to the overall stability of an investment in the index.
How it Works
As a result, the S&P index has served as the basis for thousands of investment opportunities across the globe. But how can the world’s investors all own a piece of only 500 American companies? The answer is they don’t. The investors are investing in the index fund, which, in turn, is investing in the companies.
This allows the managers of the index fund to offer some attractive benefits to their investors that are not available to direct investors. The majority of investors in index funds have families, jobs, and responsibilities. They aren’t people who can afford to risk everything in an investment. That’s what may have attracted them to the S&P 500 in the first place.
By investing in an index fund that tracks the S&P 500, they’re investing in a high-performing opportunity while limiting their exposure to protect their family and assets. Investors’ Trust offers S&P 500 index fund investments that allow flexibility in 10, 15, and 20-year options. They also offer the ability to participate with no downside risk. Best of all, your principal is protected by choosing an S&P 500 index fund investment from Investors Trust.
You’ll be planning for a bright future by investing in a vehicle tracking 500 of the highest-performing and most stable companies in the world. Contact Investors Trust to learn more about their investment opportunities in the S&P 500.