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Is investing in the S&P 500 good enough?

Relying solely on the index could result in limited exposure to emerging markets or Asia, and missing out on potential opportunities in other sectors

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    • While Big Tech has driven much of the market’s growth, over-exposure to a single sector could increase volatility, whereby a pullback in tech would result in a significant drawdown in your portfolio.
    • While Big Tech has driven much of the market’s growth, over-exposure to a single sector could increase volatility, whereby a pullback in tech would result in a significant drawdown in your portfolio. PHOTO: REUTERS

    Michele Ferrario

    Published Sun, Mar 2, 2025 · 07:05 PM

    THE S&P 500 was up by more than 23 per cent last year – not bad, right?

    Investing in low-cost exchange-traded funds (ETFs) tracking broad indexes like the S&P 500 has gained much popularity for a reason. It sounds like a no-brainer – strong returns, diversified exposure, and low fees. So, why not just put all your money in there?

    The appeal of the S&P 500 is clear. It gives investors a stake in the top 500 companies in the United States, which by far remains the largest economy in the world. The US has dominated global markets for decades, with the S&P 500 delivering an average annual return of 9 per cent over the last 20 years.

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