An S&P 500 Index Fund Already Owns These Financial Stocks. Here's Whether to Own More.
Do you really need more financial stocks?
Overview
Exchange-traded funds (ETFs) that track the S&P 500 are the largest and most popular investments in the world for good reason. They provide access to the 500 largest U.S. companies, across sectors, providing diversification in one wrapper, at least among large-caps.
So when one sector, like financials, is struggling, another sector, like energy or technology, can pick up the slack.
Details
The financials sector, for example, has been one of the worst performers over the past year. The 75 or so large-cap financial stocks within the S&P 500 are flat year to date on a cumulative basis, and they are up just 1% over the past 12 months.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.