S&P 500 Index Fund: How It Works and What a 5% Dip Means
An S&P 500 index fund tracks the index, down 5.0% in a month to 7,376.86 per Yahoo Finance. It holds the roughly 500 large US companies in the S&P 500, in the same proportions, so one purchase gives you a slice of all of them. You don’t pick winners. You accept the market’s return, minus a small fee, and that’s the whole point.