Published on 21 Apr 2024 on Motley Fool via Yahoo Finance
How Do You Beat the S&P 500? Buy This ETF That Has Done It in 7 of the Last 10 Years
If you want to make investing easy on yourself, one of the best ways to do it is by buying an ETF that tracks the S&P 500. By purchasing shares of an exchange-traded fund like the Vanguard 500 Index ETF or the SPDR S&P 500 ETF, you can gain instant access to a diversified group of 500 of the biggest U.S. companies.
It's not easy to beat the S&P 500. In fact, most hedge funds and mutual funds underperform the S&P 500 over an extended period of time. That's because the S&P 500 selects from a large pool of stocks and continuously refreshes its holdings, dumping underperformers and replacing them with up-and-coming growth stocks.