Even if some of the stocks have negative performances, why can investing in the whole S&P 500 still provide a decent return?

investing in an S&P500 provide a decent return because a S&P500 is like a basket of stocks so even though some don't provide return most of the stocks do give some return. Annually S&P500 gives a return of about 8% a year.

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gauravsingh23VT gauravsingh23VT · Answer 2 · 2022-04-30T08:31:07+02:00

Investing in the S&P500 provides a decent return because the S&P500 is a basket of stocks, and while some do not provide a return, the majority of the stocks do.

What is S&P 500?

The S&P 500 is a stock market index comprised of 500 large, industry-leading U.S. companies shares. It is widely followed and frequently used as a proxy for the overall health of the United States stock market.

An investor's portfolio can be instantly diversified by investing in an S&P 500 fund. The index was created in 1957 by Standard & Poor's, an American investment information service.

Thus, majority of shares provide profit is the reason of investing in S&P500.

For more details abaout the S&P500, click here:

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