Finance & Business
POSTED BY: GWS Team
PUBLISHED: Jun 23, 22
Only somewhat more diversified than S&P 500 index funds are whole stock market index funds.
The performance of the two funds is closely connected since both types of indexes significantly favor large-cap stocks
By choosing their own allocations, investors may, however, increase their diversification and perhaps their performance.
The S&P 500 for large-cap stocks, the S&P mid-cap 400 for mid-cap stocks, and the Russell 2000 for small-cap stocks
are three examples of three independent indexes that investors may choose to allocate roughly one-third of their portfolio assets to.
Investors must first decide whether equities are suitable for their level of risk tolerance and financial objectives