Should You Invest in the S&P 500 or the Nasdaq-100 Right Now?
The S&P 500's diversification can provide greater long-term safety, while the Nasdaq-100 may offer more upside.
Should You Invest in the S&P 500 or the Nasdaq-100 Right Now?
Overview
Tracking the S&P 500 over the years has been a great move for investors. The index, which includes the leading stocks on U.S. markets, has risen by about 10% on average over the long term. There have been plenty of challenging long periods along the way, but, generally, a buy-and-hold strategy has worked well for long-term investors. A popular exchange-traded fund (ETF) that tracks the index is the SPDR S&P 500 ETF (NYSEMKT: SPY).
A more popular option for growth investors has been to track the top stocks on the Nasdaq exchange via the Nasdaq-100 index. That has yielded stronger results in recent years due to the strong performance of tech stocks, but it also carries more risk. It can be tracked through the Invesco QQQ Trust (NASDAQ: QQQ).
Details
Which one is the better option today: tracking the S&P 500 or the Nasdaq-100?
Source
Originally published at www.fool.com.
