The S&P 500 index is among the most popular because it tracks the collective health of the 500 most influential companies in the stock market. More specifically, rather than measure the rise and fall of every single stock on the market, indexes gauge how the market is doing on the whole by measuring the health of a specific collection of stocks. Think of it like a scale that indicates the market’s health. For starters, a stock index is a way to measure how the stock market is faring. What Is an S&P 500 Index Fund?īefore you look into investing in an S&P 500 index fund, it’s important to understand the basics. No idea what that means? Don’tepi langit worry - we’ll provide a quick intro, so that you can gain an understanding of how S&P 500 funds work and if they’re the right kind of investment for you. If you’re new to the world investing, then you may want to look into investing in an S&P 500 index fund.
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