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I invest in Indian stock market and now want to also start investing in S&P 500

The S&P 500 has dropped 20% from its most recent highs, placing it in a bear market. A long-term investor sees the fall in the S&P 500 as an opportunity to build wealth, regardless of whether it crashes or corrects by a few hundred points. In the long run, equity prices tend to rise, as has been observed in the past. Here is a low-down about the S&P 500 index and how to invest in it.

The S&P 500 index consists of multinational corporations with sound business models and proven track records. The S&P 500 is made up entirely of large-cap US stocks, which adequately reflect all facets of the US economy. Not only in the technology sector but also in other important industries, the US economy is a hub for innovation. The environment provided by listed companies on the S&P 500 allows investors to ride the next bull wave in any industry.

Information technology, health care, and communication services are the top three industries in the S&P 500. By index weighting, the three largest stocks in the S&P 500 index are Microsoft, Apple, and Amazon. Other notable stocks include Facebook, Berkshire Hathaway, and Visa.

The SPDR S&P 500 ETF Trust (SPY), also referred to as the SPY ETF, is the ETF to buy when investing in S&P 500 companies. The performance of SPY closely mirrors that of the S&P 500 index. As an SPDR S&P 500 ETF Trust investor, you can confidently anticipate returns that are consistent with those generated by the S&P 500 index.

Also Read: Best investment options to invest in the US stock market

The low expense ratio of 0.0945% of the SPDR ETF is one of its appealing features. The lower the ratio, the better for the investor because costs reduce returns. You can gain exposure to some of the top US stocks across eleven key industries by purchasing SPY ETF. You can purchase SPY ETF using a brokerage account registered in the US, much like you would when purchasing equities shares.

Also Read: Dollar gaining strength against Indian Rupee means bad news for your personal finances

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