Best Market Index Funds
First of all, why are you seeing a post here on the best market index funds? Well, I wrote a great post about this over at MoneyAhoy.com and I’d like to circle back to discuss this important topic again. With so much talk of the US markets being close to a market top, I think this topic is pretty relevant. So, without further ado, let’s get started.
Which is the Best Index Fund?
Drum roll please……
For my money, it doesn’t get any better than SPY! I covered in my June monthly money making, money saving, and investment report on this which you can read here.
Why is SPY the Best Index Fund?
There are so many reason why SPY continues to be my top tip in terms of market index funds. I’ve highlighted several reasons why in my recent post on MoneyAhoy.com which you can review here: best index funds. This is a fund that is very easy to invest in through your normal investment account, IRA, and the like.
Currently with SPY, you’re getting a quarterly dividend that equates out to be around 2.0% annually. It isn’t a great dividend, but there is a fair amount of appreciation to help grow your investment.
Why Should I Invest in SPY If We Are Close To A Market Top
Who says we are? It’s impossible for anyone to know month to month whether the market will be higher or lower than it is right now. It is nearly undeniable that the Fed’s intervention in the capital markets through quantitative easing has had a significant impact, but it is nearly impossible to know when they will pull the plug.
I still maintain that timing the market is a fool’s errand better left to the fools. Do what I do and dollar cost average into the market. You’ll get earnings paid to your through dividends, and who knows – the market could go much higher from here! I believe that what happens over the next 5 years while people are trying to decide whether or not to get into the market will seem like a blip in the radar 40 years from now when you may actually need to withdraw your investment. Don’t try to over-think things!
I’m back again to discuss the benefits of Market Index Funds. I’ve been investing in market index funds for the past several months, and I still feel that the is SPY. It pays a quarterly dividend and has some of the lowest expenses around.