S&P 500 gets 69th record close for 2021 as momentum continues in US stocks
The last trading week of 2021 witnessed another milestone being achieved by S&P 500, a leading US stock market index of a diversified group of large-cap US companies across eleven major industries. S&P 500 got its 69th record close of the year 2021 as US stocks continued showing their momentum. According to Bloomberg, the S&P 500 ended Monday (December 27) near session highs, posting the 69th record close for 2021 with all major industry groups advancing. S&P 500 is at around 4778.3 levels and is up by almost 27.23 per cent for the year.
The impending interest rate hikes in 2022 and the withdrawal of liquidity by the Fed seems to have been discounted by the market as of now. Further, the global investor seems to be banking upon the growth trajectory in the US economy in 2022. The latest wave of Covid-19 is still spreading across many US cities but the investors optimism suggests that it won’t severely disrupt the U.S. Economy.
Investors who want to take exposure in US stocks may consider investing in stocks comprising the S&P 500 index. The top three sectors in the S&P 500 are Information Technology, Health Care and Communication Services, totalling about 50 per cent of the index, while the top three choices in the index are Microsoft, Apple and Amazon by index weightage.
Alternatively, one may even buy the exchange traded fund (ETF) listed on the US stock exchange that is benchmarked to the S&P 500 index. Popularly known as the SPY ETF, the SPDR S&P 500 ETF is an ETF that tracks the S&P 500 index. Unlike buying individual stocks of the S&P 500 index, you end up buying the entire bunch of index stocks by investing in SPY ETF.
Globally, the S&P 500 index is widely regarded as the best single indicator of large-cap US equities and by investing in SPY ETF, you get exposure to some of the best US stocks.