By | September 5, 2017
Long-Term Investing

Which is better for long-term investing, S&P 100 vs S&P 500? Historically S&P 500 outperformed S&P 100 by 35 percent Consider S&P 500 ETF. Because S&P 500 is well diversified and has 500 large companies.

S&P 500 Index:

S&P 500 is an American stock market index which has 500 largest listed common stock listed on Nasdaq or NYSE.  It differs from other US stock market indices because of its diverse nature. The Index weighting methodology followed is capitalization-weighted.

S&P 100 Index:

S&P 100 index is one of US Stock market index maintained by S&P. It is a Subset index of S&P 500 index and has 102 Stocks as its constituents. S&P 100 represents 63% of the S&P 500 market capitalization. It has 100 largest Nasdaq or NYSE listed stocks.

Long-Term Investing, S&P 100 vs S&P 500:

Over the Long-Term S&P 500 outperformed S&P 100 index by more than 35 percent. If one has to choose which one is best, select S&P 500 for Long-Term Investing. As it is more diversified compared to S&P 100.Long-term investing

Buy S&P 500 investment for long term investment to get additional income. S&P 500 index has more rising stars but S&P 100 has Elephants which moves more slowly compared to S&P 500.

Finally, For long term investing I prefer buying S&P 500 ETF over S&P 100 ETF.

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