Your choices when investing can seem almost limitless; your choices will depend on your preferences and investing style. S&P 500 ETFs could be an ideal solution. These investments follow the S&P 500 index by tracking 500 of the largest corporations within the U.S.
Though S&P 500 ETFs provide many advantages, they’re not suitable for everyone. There may be various reasons you might consider purchasing one; here are three that could influence your decision to invest in one:
- They’re Bound To Survive Market Crashes
The stock market can often be volatile, so any investment should be able to withstand slumps. While other investments might experience temporary misfortune in response to market decline, S&P 500 ETFs tend to deliver quick long-term gains.
The S&P 500 has an enviable record of withstanding even the worst market downturns and providing positive long-term returns – typically around 10% annually since its establishment.
As S&P 500 ETFs closely mirror their index, they should generate positive returns over time regardless of what happens with the market.
- They’re Low-maintenance Investments
If you don’t enjoy actively researching individual stocks or poring over each company’s financials, S&P 500 ETFs could be an ideal investment option as these passive funds require no selection process or trading activities from you – no picking individual shares within each asset either!
These assets tend to perform best when left alone for as long as possible; you should simply invest. S&P 500 ETFs may be an ideal “set it and forget it” investment choice.
- They Give Instant Diversification
An appropriately expanded portfolio is key to investing success. No stock is completely risk-free, and placing all your capital in one company could be disastrous.
When investing in an S&P 500 ETF, you are buying stocks from 500 organizations from a wide variety of industries – – from technology to medical services and utilities – instantly diversifying your portfolio while giving it access to some of the biggest and strongest companies across all of these fields. Your portfolio won’t just benefit from having increased exposure, but will also contain strong assets.