For the stock market for good stock to buy, this has been a turbulent stretch. From the early 2020 pandemic-induced sell-off to recent record highs, the market has definitely tested the mettle of investors. But investors should weigh long-term results when looking for the best stocks, not short-term volatility. We’ve compiled the best stocks in the S&P 500, calculated by year-to-date results, to help with that.
Right now, are these the best stocks to invest in? Not necessarily, however. Not only is it a task the pros have not yet mastered to forecast the future of even the latest top-performing stocks, but the best stocks for your portfolio are not always the best stocks for anyone else’s portfolio.
You may also want to consider investing in stocks by index funds if you’re looking for the right stocks to invest in.
For several, the good stock to buy answer: index funds
It is difficult to pick individual stocks, which is why many investors shift to index mutual funds and exchange-traded funds that bundle together many stocks.
They have a lot of control as individual stocks come together through index funds into a diversified portfolio. Since 1928, the S&P 500 index, which comprises about 500 of the largest companies in the U.S.. It has reported an average annual return of almost 10 percent.
The goal of the S&P 500 index fund or ETF would be to reflect the performance of the S&P 500 by investing in the firms that make up the index. Similarly, with an index fund tied to the benchmark, investors can track the DJIA. You could buy a complete stock market fund, which will carry thousands of stocks, if you want to cast a wider net.
The winners balance out the losers inside an index fund. You don’t have to predict which is which. That’s why many financial planners think that the foundation of a long-term portfolio. They should be low-cost index funds and exchange-traded funds.