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No. of Recommendations: 13
What are your views on the S&P index funds?

a07843
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a07843,
I think if a person has no inclination to research and most important, be responsible for their personal finance, the least they could do is set aside contributions to an index fund. Maybe even a broader index fund, but I wouldn't. I would almost rather that person buy SPiDers (SPY) instead for better liquidity, and in some cases, I believe better tax efficiency. (Not my general area of interest though.)

As for the drag on performance, it is true. In the tech run up last year, the Nasdaq 100 soundly beat the S&P 500. Short run, as a spectator, it doesn't matter at all. Diversification means owning all the winners and all the losers and all those in the middle. Not bad, in the end that has still historically produced a better return than many other classes of investments.

I am not here to disrespect you. I am only providing my answer in the context of the question as I understood it.

exilion
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