S&P 500 Index (symbol .ixic)
The Dow Jones Industrial Average is the most popular index used to indicate stock prices. Since the Dow is a composite of 30 companies, some people think that the S&P is a better index because it takes into account 500 companies. Like the Dow, the S&P 500 is a cross section of the top performing companies in the US. The companies that are used for the index are approved by the S&P Index Committee.
S&P index funds are very popular. These mutual funds allow you to join a large section of the market without having to buy hundreds of shares of stock. Instead of lots of short term trades going on, as most mutual funds, these index funds have a buy and hold strategy. The most popular fund for the S&P 500 is the Vanguard Index 500. It has the lowest fees in the industry and that will make a large difference in your overall return.
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