The S&P 500:
Your Gateway to Smarter, Simpler Investing

The S&P 500 is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the U.S. It’s weighted by market capitalization, meaning bigger companies like Apple and Microsoft have more influence. It’s considered a benchmark for the overall health of the U.S. economy and is widely used by investors to gauge market performance.

Yes, the S&P 500 has historically delivered an average annual return of around 10%. While there are short-term ups and downs, it has shown strong long-term growth, making it a popular choice for retirement accounts and passive investors seeking consistent, broad exposure to the stock market.

Beginners can invest in the S&P 500 by buying shares in an ETF (exchange-traded fund) that tracks the index, such as VOO, SPY, or IVV. These funds are available through most brokerage platforms like eToro, Vanguard, and Trading 212. You don’t need to pick individual stocks — one ETF gives you exposure to all 500 companies.

The S&P 500 includes 500 of the largest U.S. companies, spanning sectors like technology, healthcare, financials, and consumer goods. Think names like Apple, Amazon, Google (Alphabet), Microsoft, and Johnson & Johnson. The list is updated regularly and managed by S&P Dow Jones Indices.

Over the past 10 years, the S&P 500 has delivered an average annual return of roughly 10–12%, depending on the specific time frame. This includes dividend reinvestment and reflects the compounding effect of long-term investing. Keep in mind: past performance doesn’t guarantee future results.

All three ETFs track the same index but differ slightly in fees, trading volume, and structure.

• VOO (Vanguard): Low cost, ideal for long-term investors.

• SPY (SPDR): Oldest and most traded, great for active traders.

• IVV (iShares): Similar to VOO, with strong tax efficiency. The differences may be minor, but lower fees like VOO’s 0.03% can add up over time.

Yes, the S&P 500 can go down — just like any investment tied to the stock market. While it’s historically trended upward, market crashes, recessions, or global events can cause short-term losses. That’s why it’s best suited for long-term investing, where time helps smooth out the volatility.

Over time, the U.S. economy grows, companies innovate, and earnings rise — which is reflected in the stock market. The S&P 500 includes the biggest and most successful companies, and it's regularly updated to replace underperformers. That natural evolution helps the index trend upward over the long term.

For most people, investing in the S&P 500 is a safer and simpler strategy than picking individual stocks. It spreads your risk across 500 companies and removes the guesswork. If you’re new to investing or want a reliable, low-maintenance portfolio, an S&P 500 ETF is a strong starting point.