Lesson 5 of 8
What Is an Index Fund?
Own 500 companies in one click
1 share of SPY== 500 companiesweighted by size
S&P 500
Top 500
US companies
NASDAQ-100
Top 100
tech-heavy
Dow Jones
30 stocks
blue chips
loading SPY...
S&P 500 (SPY) over 5 years. This is "the market."
Instead of picking stocks, you buy the whole market. The fund automatically rebalances as companies change.
the data
Over any 15-year period, ~90% of professional fund managers fail to beat the S&P 500. You almost certainly can't either. And that's fine.
Check yourself
What does the S&P 500 represent?