S&P 500
The S&P 500 (Standard & Poor's 500) is the most closely watched stock index in the world. It comprises the 500 largest listed companies in the USA – from Apple and Microsoft to Coca-Cola and McDonald's.
Why so important? The S&P 500 represents approx. 80% of total US stock market capitalisation. When the S&P rises, the US economy is doing well – and the USA is the world's largest economy.
Historical performance: since 1928 an average return of approx. 10% per year (incl. dividends). $10,000 invested in 1980 would be worth over $1 million today.
ETFs on the S&P 500 are among the most popular and cheapest investments worldwide. Warren Buffett recommends them as the ideal investment for private individuals.
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