Index funds are wonderful tools for investors because they offer diversification for low fees. But some index funds are more concentrated than you might realize. And if you watched your S&P 500 index fund decline 18.8% from Feb. 19 through April 8, you might have considered altering your strategy. It turned out that waiting was the best strategy, but you might still want to lower your risk by mixing up your indexing strategies.
The decline early this year now seems to have been an overreaction by investors to President Donald Trump’s initial tariff announcements on April 2. Through April 8, the S&P 500
SPX was down 15% for 2025. But through Monday, the large-cap U.S. benchmark index had returned 15.3% for 2025. All investment returns in this article include reinvested dividends, and all fund returns are net of expenses.
Love your stock-index fund? It might be time to spice up your investment strategy.
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Index funds are wonderful tools for investors because they offer diversification for low fees. But some index funds are more concentrated than you might realize. And if you watched your S&P 500 index fund decline 18.8% from Feb. 19 through April 8, you might have considered altering your strategy. It turned out that waiting was the best strategy, but you might still want to lower your risk by mixing up your indexing strategies.
The decline early this year now seems to have been an overreaction by investors to President Donald Trump’s initial tariff announcements on April 2. Through April 8, the S&P 500
SPX was down 15% for 2025. But through Monday, the large-cap U.S. benchmark index had returned 15.3% for 2025. All investment returns in this article include reinvested dividends, and all fund returns are net of expenses.
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