Stock market volatility has a lot of investors uncertain about what to do with their money right now. Even corporate giants have seen enormous swings in their share prices, and there’s no telling when things will calm down again.
That said, investing is still one of the best ways to grow your wealth over the long term. And if you’re worried about betting on the wrong stock, an S&P 500 index fund can be the perfect place for your savings right now.
What’s an S&P 500 index fund?
For those who don’t know, an index fund acts like a bundle of stocks you purchase as a package, and it’s designed to mimic the performance of a market index. S&P 500 index funds, as the name implies, follow the S&P 500 index, which is composed of 500 of the largest publicly-traded companies in the United States.
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Typically, S&P 500 index funds have similar returns to the index itself, but they’ll always fall a little short, because they have expense ratios. These are annual fees all shareholders pay to the fund manager.
Usually, there isn’t a lot of turnover within the S&P 500, but if a new company is added and an old one drops out, fund…
