SPMD - Got $1000 to Invest in Stocks? Put It in This Index Fund.
2024-07-03 08:30:00 ET
If you've been a student of the market for any meaningful length of time, you've likely stumbled across advice to just buy and hold an S&P 500 index fund like the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) . And it's a good tip. Not only is such a plan simple enough for anyone to execute, but it also sidesteps all the inherent risks of picking individual stocks.
If you're a true long-term investor, though, there's a better option for the idle money in your account. Instead consider taking a stake in a mid-cap exchange-traded index fund like the SPDR Portfolio S&P 400 Mid Cap ETF (NYSEMKT: SPMD) or Vanguard S&P Mid-Cap 400 ETF (NYSEMKT: IVOO) , both of which are meant to mirror the S&P 400 MidCap index.
You'll likely produce stronger returns with exposure to this often-overlooked sliver of the stock market. The numbers say so.
For further details see:
Got $1,000 to Invest in Stocks? Put It in This Index Fund.