Apologies for my ignorant/ naive question: Why do people favor total US Stock over just s&p 500.
When I look at the returns at 1, 3, 5 years, s&p 500 still looks marginally better; and even during recession times, the lows are marginally lesser in s&p 500.
However, I do see that the total stock market appears to have posed slightly better returns at 4.3% compared to s&P's 3.8% since inception. Is that it?
or Am I missing something very basic and would appreciate everyone's input.
Obviously, somehow I opened just s&p 500 when i started out a year back and funded the money mainly into that and now I am wondering if I have to invest equal money into the extended market to simulate the total US market or if I would be okay to continue just investing in the s&p 500 index funds.
Thanks so much
When I look at the returns at 1, 3, 5 years, s&p 500 still looks marginally better; and even during recession times, the lows are marginally lesser in s&p 500.
However, I do see that the total stock market appears to have posed slightly better returns at 4.3% compared to s&P's 3.8% since inception. Is that it?
or Am I missing something very basic and would appreciate everyone's input.
Obviously, somehow I opened just s&p 500 when i started out a year back and funded the money mainly into that and now I am wondering if I have to invest equal money into the extended market to simulate the total US market or if I would be okay to continue just investing in the s&p 500 index funds.
Thanks so much
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