If You Only Invest In an S&P 500 Index Fund, You're Missing Out on This Unparalleled Semiconductor Stock

One of the best ways to invest in the stock market is to buy an S&P 500 index fund. Buying an index fund ensures a diversified portfolio, so you're sure to own at least a small piece of the biggest winners in the market. And since just a handful of companies drive the majority of total returns for the index each year, it's imperative that you own shares in those companies to produce good returns.The biggest winners in the stock market over the past two years have been artificial intelligence (AI) stocks. Companies like Nvidia, Apple, and Meta have been some of the largest contributors to the S&P 500's returns in 2024. If you own an S&P 500 index fund, you own a good amount of each of those mega-cap stocks.However, the S&P 500 doesn't include every company benefiting from increased spending on artificial intelligence. The index only includes consistently profitable U.S.-based companies. As a result, investors focused exclusively on an S&P 500 index fund can miss out on some of the biggest winners.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool