# What is the best S&P 500 ETF?

Olivia Watson · August 4, 2026

> The Vanguard S&P 500 ETF (VOO) is widely considered the best S&P 500 index fund, tracking the performance of the S&P 500 index with extremely low fees...

The Vanguard S&P 500 ETF (VOO) is widely considered the best S&P 500 index fund, tracking the performance of the S&P 500 index with extremely low fees of just 0.03%.

The SPDR S&P 500 ETF Trust (SPY) is the oldest and largest S&P 500 ETF, with over $400 billion in assets under management, but it has a slightly higher expense ratio of 0.09%.

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The iShares Core S&P 500 ETF (IVV) is another top contender, offering nearly identical performance to VOO and SPY while charging a 0.03% expense ratio.

The S&P 500 index itself is a market-capitalization-weighted index, meaning larger companies have a greater influence on the index's performance.

The S&P 500 is designed to provide a broad representation of the U.S.

large-cap equity market, covering approximately 80% of the total U.S.

stock market capitalization.

S&P 500 index funds typically have low turnover, as the index only makes changes to its constituents a few times per year, resulting in low trading costs.

Investing in an S&P 500 ETF can provide instant diversification, as the index holds stocks from 11 different sectors, ranging from technology to healthcare to financials.

The S&P 500 has historically outperformed many actively managed mutual funds, making it a popular choice for long-term, passive investors.

S&P 500 ETFs can be used as a core holding in a diversified portfolio, with the potential to generate steady, market-like returns over the long run.

The S&P 500 index is reconstituted quarterly, with new companies added or removed based on their market capitalization and other criteria.

The S&P 500 index has experienced an average annual return of around 10% over the past century, though individual years can see significant volatility.

S&P 500 ETFs can be particularly tax-efficient, as they typically have low turnover and generate fewer capital gains distributions compared to actively managed funds.

The S&P 500 index is weighted by float-adjusted market capitalization, meaning it considers only the publicly traded shares of a company, not the total outstanding shares.

S&P 500 ETFs can provide exposure to the U.S.

large-cap equity market with a single investment, simplifying portfolio construction and management.

The S&P 500 index is widely used as a benchmark for the broader U.S.

stock market, and its performance is closely followed by investors and financial media.

S&P 500 ETFs can be used to gain exposure to the U.S.

economy as a whole, as the index includes companies from various industries and sectors.

The S&P 500 index is maintained by a committee of experts at S&P Dow Jones Indices, who make decisions on index changes based on a set of established criteria.

S&P 500 ETFs can be a cost-effective way to gain exposure to the U.S.

large-cap equity market, with the potential for long-term capital appreciation.

The S&P 500 index has a history of weathering economic downturns, making it a popular choice for investors seeking stability and diversification.

Investing in an S&P 500 ETF can be a simple and straightforward way to participate in the growth of the U.S.

stock market, without the need for extensive research or stock selection.

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