fool.com·Apr 20, 2026
Investing in the S&P 500 is popular for long-term wealth creation, often seen as a default choice among investors; however, relying solely on it may overlook other asset classes that could enhance growth, reduce risk, or provide income, leading to potential volatility due to its tech concentration.
While investing in S&P 500 ETFs like VOO or IVV is a popular strategy for long-term wealth creation, relying solely on them could result in a lack of diversification, exposing your portfolio to higher volatility due to its tech concentration and growth tilt. To enhance growth opportunities and mitigate risks, consider incorporating a mix of other asset classes such as bonds, real estate, or dividend stocks to achieve a more balanced portfolio.