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If you want to invest in US equities and are looking for something other than the S&P 500 index or individual stocks, you could also consider other major indexe
by andsoitis 1y ago
If you want to invest in US equities and are looking for something other than the S&P 500 index or individual stocks, you could also consider other major indexes like:
- NASDAQ Composite (heavily tech & growth)
- Russell 2000 (2,000 small cap companies)
- Wilshire 5000 Total Market Index (exposure to nearly all publicly traded companies in the US)
- S&P MidCap 400 (as the name implies; bridges gap between large and small cap)
- S&P SmallCap 600 (600 small-cap US companies, emphasizing firms with strong financial health)
You could also put your money into bonds, but they don't perform as well as equities, but are lower risk. Even though government (muni, state, federal) come with tax benefits, they typically still underperform something like the S&P 500 after tax.
You can also invest your money into property with rental incomes, start your own business, etc., but these all come with the burden of additional effort.
Other alternative assets you can push your money into are things like commodities, collectibles, or cryptocurrencies, with the first having a more predictable, though not guaranteed, demand. And if you want to get more esoteric, you can put your money into derivatives.
All in all, S&P 500 index has stood out for its simplicity, low cost (expense ratios), low effort (you don't have to work or manage), and high returns.
- fragmede 1y agoYou seem quite knowledgeable, so I've got a question I'd love your opinion on. Those, as well as the GLD ETF and Microstrategy are all denominated in dollars. If I wanted a hedge against the dollar, what would you do? Just in case there's a black swan event and the dollar collapses, where's somewhere safe you would park some assets?