Tracking the S&P 500 has historically been a good move for investors.
The index is a collection of the top stocks on U.S. markets and has averaged an annual return of around 10%
But that’s an average that spans decades. There have been some troubling periods along the way, when the index hasn’t performed well at all. For investors in or near retirement, or those who can’t afford to wait out a recovery, it can be stressful when concerns about a possible market crash are heightened.
There is one way you can reduce risk, however, and that may involve not tracking the S&P 500 right now. One key number to focus on when looking at stocks is beta. This shows how closely an investment has tracked the S&P 500.