Indexes like the S&P 500 (which tracks 500 U.S. company stocks) or the Dow Jones industrial average (which tracks 30 large U.S. company stocks) are often referred to as ‘the market’, and so changes in these index prices are commonly considered changes to overall stock market performance.
While the term “the market” may be referencing just one index, Acorns portfolios are diversified across a range of ETF investments, from a conservative portfolio of all bond exposure, to portfolios with a mixture of exposure to stocks and bonds, up to an aggressive portfolio of all stock exposure. The diversification of the portfolio generally means that not all investments are moving in the same direction at the same speed and at the same time, which is why there is a difference to what the ‘the market’ is doing when it’s referencing a single index!
Remember, you can always check back and make sure your investor profile page is up to date with an accurate representation of your investment timeframe, risk tolerance, and financial goals so that you ensure your portfolio recommendation reflects your preferences!
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