Invest in the S&P 500 for Greater Investment Stability
Investing in the S&P 500 may seem to be beyond the capabilities of people who aren’t professional financiers and investors. But it can be the safest investment anyone can make. We’ll explain how investing in these well-known, successful companies can be done by people all over the world and why it can be such a safe and rewarding investment.
Standard & Poor’s 500 index was introduced in 1957. The index tracks the performance of 500 American companies listed on the New York Stock Exchange (NYSE) and the Nasdaq. Standard & Poor’s is a company offering credit ratings for investments, financial data, and several equity indexes.
The S&P 500 index is grouped into categories that track the performance of a particular facet of the financial market. These facets, when combined, are designed to represent the composition of the US economy. This is why so much attention is paid to the S&P 500. The index can be used as a reliable barometer of the health of the US economy.
Investing in the S&P 500
People often think that investing in the S&P 500 means investing in the individual companies that comprise the index. They wonder how so many people around the world can possibly share in a limited amount of stock in 500 companies.
Investing in the S&P 500 simply means that you’re investing in a fund that has, in turn, invested in the companies listed on the index. This means you have protection that a direct investment doesn’t provide. You’re able to participate in the growth of the stock market without any downside risk. This is why funds based on the performance of the S&P 500 are popular investment vehicles that can be found all over the world.
A fund based on the performance of 500 of the world’s most successful and profitable companies is able to deliver a greater amount of investment safety and security. By investing in this fund, your principal is protected by structured notes provided by highly-rated financial institutions that also have an interest in the fund’s performance.
Investing in the S&P 500 allows you to enjoy 10, 15, and 20-year terms. Your principal protection grows with the length of your investment to cover the expected returns. A 10-year term investment is 100% protected, a 15-year investment is 140% protected, and a 20-year investment is 160% principal protected.
The ability to choose your participation terms and the lack of any downside risk on an investment with unlimited growth potential is the reason these investments are so popular around the world. The S&P 500 is one of the world’s most stable, high-performing investments.
Investors Trust Offers Unlimited Growth
Investors Trust offers S&P 500 investments that allow everyone to reap the benefits of these highly successful companies across the entire spectrum of the US economy. To learn more about how an investment in the S&P 500 works, please contact Investors Trust.