Is investing in the S&P 500 good enough?

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Relying solely on the index could result in limited exposure to emerging markets or Asia, and missing out on potential opportunities in other sectors

THE S&P 500 was up by more than 23 per cent last year – not bad, right?

Investing in low-cost exchange-traded funds (ETFs) tracking broad indexes like the S&P 500 has gained much popularity for a reason. It sounds like a no-brainer – strong returns, diversified exposure, and low fees. So, why not just put all your money in there?

The appeal of the S&P 500 is clear. It gives investors a stake in the top 500 companies in the United States, which by far remains the largest economy in the world. The US has dominated global markets for decades, with the S&P 500 delivering an average annual return of 9 per cent over the last 20 years.

Good news: Investing in the S&P 500 is better than doing nothing

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