📉 Composition and concentration
Large companies dominate the index: tech giants like Apple, Microsoft, Amazon, Alphabet, Nvidia, and Meta have a significant weighting and can strongly influence its overall performance.
Sometimes, a small number of stocks account for a significant portion of the total growth of the S&P 500, which can increase the concentration of risk in those values.
📌 How to invest
Although you do not buy the index directly, you can invest in funds that replicate the S&P 500, such as popular ETFs (for example, SPY or IVV) or index funds that aim to follow its performance. #S&P500
#SPY #IVV #ETFS