Learning how to invest in the S&P 500 got a lot easier after 1976.
That is the year that John Bogle, founder of Vanguard, created the first index fund. This new type of investment fund allowed everyday investors, like you and me, to invest in indices (such as the S&P 500 and Dow Jones Industrial Average) with just one purchase.
Without index funds, if you wanted to invest in the S&P 500, you’d either have to buy each stock individually through 500 separate transactions or pay a mutual fund manager too much money to try to recreate the index themselves.
Index funds enable people to invest in the S&P 500 with just one purchase, and for a very low cost.
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