The S&P 500 is the market’s barometer for the top 500 U.S.-listed stocks trading. For the Fourth of July, why not take a moment to think about investing in your country’s well-being and capitalistic pride? That is, when the trend returns.
The S&P 500 index is a good way to measure the health of the U.S. economy, since it tracks the 500 largest corporations trading in the United States. in fact, the original ETF to market in 1993 was the SPDRs (NYSEArca: SPY) which is the largest fund trading of them all. [How to Play the S&P 500 with ETFs.]
Another way to get a pure U.S. company share play is by investing in Rydex S&P Equal Weight ETF (NYSEArca: RSP) which has nearly identical holdings to the S&P 500, but gives an equal weighting to each individual stock, 0.20% to each of the 500 stocks. [The Equal Weight ETF Pulls Its Weight.]
The S&P 500 index is about as all-American as apple pie and Rosie the Riveter, and whether you are bullish or bearish right now, this index is the barometer for the health of our country’s economy. These days, we’re tepidly recovering, but we’ve got a long way to go. The S&P 500 will surely let us know about the progress that’s being made.
Happy Fourth Of July from ETF Trends!
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Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.