2007-08-13 13:16:01 · 5 answers · asked by helen 1 in Business & Finance ➔ Investing
If you invest in a low fee mutual fund based on the S&P 500 such as Vanguard VFINX you will have made a very safe (but still has some risk) investment.
2007-08-13 13:38:00 · answer #1 · answered by Nelson_DeVon 7 · 0⤊ 0⤋
The S & P 500 index is comprised of 500 large US companies that are chosen by Standard and Poors to be representative of the US economy. You would probably recognize almost all of them. An investment in a fund that trys to mirror this index would be consided to be well diversified and a good choice to be a large portion of your investment allocation to stocks.
2007-08-13 21:48:42 · answer #2 · answered by J 4 · 0⤊ 0⤋
The research group, called Standards & Poor tracks the 500 most widely traded stocks in the U.S. and calls this batch of stocks the S&P500. It is an index because it is used as a barometer to measure the overall market returns.
2007-08-14 15:31:26 · answer #3 · answered by derobake 4 · 0⤊ 0⤋
This index is heavily weighted with financial stocks. Given the current upheaval in the financials (subprime mortgages, leveraged hedge funds) it might be better to consider an actively managed fund. You might consider Vanguard's Global Equity Fund (VHGEX).
2007-08-13 23:37:32 · answer #4 · answered by Andy 3 · 0⤊ 0⤋
Not sure what your question is. It's a nice index to invest in, you can buy the etf (SPY) and that works well. Just have to know when to sell it. Go to : www.justmanageit.com and see how easy it is.
2007-08-13 20:37:32 · answer #5 · answered by Retirement Indicator 1 · 0⤊ 0⤋