Buying an exchange-traded fund (ETF) that tracks the S&P 500 index is a terrific method of generating long-term wealth. Statistics show that around 90% of actively managed funds failed to beat the index over the last 15 years. Simply buying the index allows you to catapult your performance into the top 10% of the industry.

But there's one ETF that could improve your portfolio's performance even more.

For long-term performance, few ETFs can match the power of those that track the S&P 500. But there are market cycles in which certain ETFs can outperform that index. These cycles can last for years. Where the S&P 500 struggles most is during bear markets. The index is always fully invested in the stock market. So when stock markets tank, there's nowhere for the index to hide.

Continue reading

Source Fool.com