2024-04-28 10:30:00 ET
Stock market indexes are formed by grouping companies according to specific criteria -- and they are often used as comparison points for an investor's own portfolio.
The most popular and important index is the S&P 500 , which tracks the largest 500 public U.S. companies. When it comes to benchmarks, the S&P 500 is the benchmark. Given the size and diversity of the companies the S&P 500 tracks, it's often used to gauge the health of the U.S. economy, and investing in an S&P 500 fund is akin to investing in the broader U.S. economy.
Despite how great of an investment option the S&P 500 is, one ETF has historically been a better investment: the Vanguard Growth ETF (NYSEMKT: VUG) . Let's see why -- and whether it might make a sensible investment now.
For further details see:
The S&P 500 Is a Great Option, but History Says This ETF May Be a Better Choice