Want $1 million in retirement? 2 simple index funds to buy and hold for decades.

Index funds provide excellent diversification and serve as an advantageous long-term investment, facilitating substantial compound growth.

The S&P 500 has generated substantial wealth for numerous individuals over the decades. The fund consists of 500 significant corporations across several sectors, and the S&P 500 is regarded as a barometer for the U.S. stock market. Although the criteria may fluctuate, publicly traded corporations presently must possess a market capitalization above $18 billion and have been publicly listed for a minimum of one year.

A notable index fund to consider is the S&P MidCap 400, which, as indicated by its name, comprises medium-sized companies. S&P Global reports that the average market capitalization of a company in the S&P MidCap 400 is $6.7 billion, indicating that these companies are significantly smaller than those in the S&P 500, yet larger than small-cap firms.