2 Reasons to Invest in an S&P 500 ETF -- and 1 Smart Reason to Avoid It
Investing in the stock market can be daunting at times. There are countless stocks to choose from, and if you invest in the wrong places, you could potentially lose a lot of money.
Exchange-traded funds (ETFs) can be a simpler and more affordable way to invest, making them perfect for beginners or those looking for a low-effort investment. An ETF is a basket of securities bundled together into a single investment, meaning that by investing in just one share of an ETF, you're actually investing in dozens or hundreds of stocks at once.
The S&P 500 ETF tracks the S&P 500 (SNPINDEX: ^GSPC) index itself, so it includes the same stocks as the index and aims to mirror its performance. There are a couple of good reasons to invest in this type of ETF, as well as one reason you may want to avoid it.
Source Fool.com
