If you search for S&P 500 ETFs, you may come across dozens of funds. Just because S&P 500 is in a fund's name doesn't necessarily mean it tracks the index as a whole. Rather, many of these ETFs track sub-components, say value or growth stocks, within the broader index.Vanguard S&P offers a lower expense ratio (0.035%) than SPY (0.095%), which means lower costs for investors and potentially higher net returns over the long term. VOO might be the more economical choice for cost-conscious investors, especially those investing large sums or planning for long-term goals like retirement.Sector ETFs are another way to beat the S&P 500. While no single sector will beat the broad-market index all the time, investing in sector ETFs can pay off. With geopolitical tensions in the world, defense stocks are up this year, and that has made the Global X Defense Tech ETF (SHLD 0.32%) a winner.
Which S&P 500 ETF has the lowest expense ratio : 100 Lowest Expense Ratio ETFs – Cheapest ETFs
| Symbol | Name | Expense Ratio |
|---|---|---|
| SPLG | SPDR Portfolio S&P 500 ETF | 0.02% |
| BBUS | JPMorgan BetaBuilders U.S. Equity ETF | 0.02% |
| BND | Vanguard Total Bond Market ETF | 0.03% |
| AGG | iShares Core U.S. Aggregate Bond ETF | 0.03% |
How many S&P 500 ETFs should I own
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.
Is SPY or voo better : Over the long run, they do compound—those fee differences—and investors have been putting a lot more money into VOO versus SPY. That is the reason why we view VOO slightly better than SPY. And that is just the basic approach, which is the lower the investor can pay, the better the investment is.
Investing in an S&P 500 fund can instantly diversify your portfolio and is generally considered less risky. S&P 500 index funds or ETFs will track the performance of the S&P 500, which means when the S&P 500 does well, your investment will, too. (The opposite is also true, of course.)
If you are a cost-conscious investor, the VOO, IVV, and SPLG might make a more attractive option compared to SPY with their lower expense ratios. Conversely, you might appreciate the higher liquidity of SPY if you're an active or institutional trader.
What S&P 500 should I invest in
Top S&P 500 index funds in 2024
| Fund (ticker) | 5-year annual returns | Expense ratio |
|---|---|---|
| iShares Core S&P 500 ETF (IVV) | 14.5% | 0.03% |
| Schwab S&P 500 Index (SWPPX) | 14.5% | 0.02% |
| Vanguard 500 Index Fund (VFIAX) | 14.5% | 0.04% |
| Fidelity 500 index fund (FXAIX) | 14.5% | 0.015% |
SPDR S&P 500 ETF Trust (SPY)
SPDR S&P 500 ETF Trust (SPY)
However, it is the most well established and the most liquid fund in the entire stock market, giving active traders a huge advantage in their ability to rapidly buy and sell positions.Generally speaking, fewer than 10 ETFs are likely enough to diversify your portfolio, but this will vary depending on your financial goals, ranging from retirement savings to income generation.
Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification. But the number of ETFs is not what you should be looking at.
Does Buffett own VOO : The report suggests that Buffett's company did not buy many stocks last quarter, adding no new names and increasing its stake in only three companies. However, Berkshire does have two ETFs listed on the 13F. The SPDR S&P 500 ETF Trust, ticker SPY, and the Vanguard S&P 500 ETF, ticker VOO.
What is Warren Buffett’s favorite ETF : Warren Buffett has long recommended the S&P 500 index fund and ETF, and through his holding company Berkshire Hathaway, he also owns two of these types of investments: the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
What if I invested $1000 in S&P 500 10 years ago
Over the past decade, you would have done even better, as the S&P 500 posted an average annual return of a whopping 12.68%. Here's how much your account balance would be now if you were invested over the past 10 years: $1,000 would grow to $3,300. $5,000 would grow to $16,498.
SPY: Key differences. The most glaring difference between VOO and SPY is in their respective expense ratios. VOO sits at a very low 0.03%, while SPY has a still very low (but not quite as low as VOO) 0.0945%. Though the difference is just 0.0645% per year, it can add up over time.The easiest way to invest in the S&P 500
The simplest way to invest in the index is through S&P 500 index funds or ETFs that replicate the index. You can purchase these in a taxable brokerage account, or if you're investing for retirement, in a 401(k) or IRA, which come with added tax benefits.
Is it smart to buy S&P 500 : Is Investing in the S&P 500 Less Risky Than Buying a Single Stock Generally, yes. The S&P 500 is considered well-diversified by sector, which means it includes stocks in all major areas, including technology and consumer discretionary—meaning declines in some sectors may be offset by gains in other sectors.