Investing & Building Wealth · Activity 1
Index fund vs. single stock
You start with $1,000 and add $100 every year. An index fund owns tiny pieces of hundreds of companies. A single stock owns one company. Choose your mix and watch the ride.
Your choices
The ride, year by year
Showing market history A — made-up example years, not real market data.
- Ends at
- $3,524
- You put in
- $2,000
- Worst year
- -18%
- Best year
- 21%
- Ends at
- $2,340
- You put in
- $2,000
- Worst year
- -55%
- Best year
- 80%
- Ends at
- $3,169
- You put in
- $2,000
- Worst year
- -24%
- Best year
- 33%
Risk vs. return: across both histories
| Strategy | Lowest ending | Highest ending | Spread | Worst year |
|---|---|---|---|---|
| All index fund | $3,215 | $3,524 | $309 | -22% |
| All single stock | $1,133 | $2,340 | $1,207 | -60% |
| My mix | $2,590 | $3,169 | $579 | -24% |
A wider spread means more uncertainty: you can't know which history you'll get. The single stock's spread is much wider than the index fund's.
Workbook reflection
Returns are illustrative examples, not predictions or financial advice. Real investing for anyone under 18 requires an account managed by a grown-up. Keep practicing in the game's Investing & Long-term Growth Lab.
Practice in Money Moves →