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5 Best S&P 500 ETFs to Buy for Q1 2025
The S&P 500 is a list of the largest companies in the United States. By investing in an ETF that tracks its performance, you can gain exposure to all of those companies very easily. Read on to find the best S&P 500 ETFs and get help on how to choose between them.
What are the top S&P 500 ETFs to buy?
Copy link to sectionThe top ETFs can be found in the table below. Our experts have combed the markets to pick out the best options and you can start investing by clicking any of the links in the table. Otherwise, you can scroll down to find more information on each.
| # | ETF ticker | ETF name | Learn more |
|---|---|---|---|
| 1 | VOO | Vanguard S&P 500 ETF | Learn more > |
| 2 | SPY | SPDR S&P 500 ETF Trust | Learn more > |
| 3 | IVV | iShares Core S&P 500 ETF | Learn more > |
| 4 | RSP | Invesco S&P 500 Equal Weight ETF | Learn more > |
| 5 | IVE | iShares S&P 500 Value ETF | Learn more > |
1. Vanguard S&P 500 ETF (NYSEARCA: VOO)
Copy link to section- Current price: $502.86
- AUM: $1.14 trillion
- Annual expense ratio: 0.03%
- YTD performance: 15.88%
- Annual dividend yield: 1.29%
For investors who seek a reliable and cost-effective avenue to the heart of the U.S. stock market, the Vanguard S&P 500 ETF (VOO) stands out as an excellent choice.
Since its inception in 2010, VOO has grown to manage an impressive $1.14 trillion in assets, a testament to its effectiveness and investor confidence. With an ultra-low expense ratio of 0.03%, VOO ensures that more of your money is working for you, not lost to fees.
VOO offers a no-nonsense approach to investing by directly tracking the S&P 500 Index. This means it holds the same 500 large-cap U.S. companies, providing investors with instant diversification across various sectors.
By mirroring the S&P 500, VOO benefits from the consistent upward trajectory historically exhibited by the U.S. stock market. Managed by the Vanguard Equity Index Group, this ETF is designed for those who believe in the enduring strength of the American economy. Its high trading volume guarantees liquidity, making it a flexible and stable cornerstone for any investment portfolio.
2. SPDR S&P 500 ETF Trust (NYSEARCA: SPY)
Copy link to section- Current price: $547.10
- AUM: $534.82 billion
- Annual expense ratio: 0.09%
- YTD performance: 15.75%
- Annual dividend yield: 1.24%
The SPDR S&P 500 ETF Trust, commonly known as SPY, is the oldest ETF tracking the S&P 500 Index. Launched in 1993, SPY aims to mirror the performance of the S&P 500 Index, which includes 500 of the largest U.S. companies spread across all eleven GICS sectors.
This ETF provides investors with a broad and diversified exposure to the U.S. large-cap equity market. The fund’s top holdings include tech giants like Microsoft, Apple, and NVIDIA, which together make up a significant portion of its portfolio.
This concentration in high-performing tech stocks has contributed to its impressive YTD performance of 15.75%. Additionally, SPY’s quarterly dividend payments provide a steady income stream, enhancing its appeal to income-focused investors.
As a highly liquid fund with a massive asset base of over $534 billion, SPY offers excellent flexibility and ease of trading. The ETF’s extensive history and robust performance make it a cornerstone in many investment portfolios, suitable for both new investors and seasoned professionals seeking reliable exposure to the U.S. equity market.
3. iShares Core S&P 500 ETF (NYSEARCA: IVV)
Copy link to section- Current price: $548.31
- AUM: $473.37 billion
- Annual expense ratio: 0.03%
- YTD performance: 15.46%
- Annual dividend yield: 1.27%
For those who prioritize cost-efficiency without sacrificing performance, the iShares Core S&P 500 ETF (IVV) is a standout choice. Renowned for its minimal expense ratio of just 0.03%, IVV offers a highly economical way to invest in the 500 largest U.S. companies, making it a preferred option for frugal investors seeking broad market exposure.
Managed by BlackRock, the global leader in asset management, IVV benefits from the firm’s extensive expertise and resources. Its massive asset base of $473.37 billion and robust trading volume ensure excellent liquidity, making it an ideal core holding for those focused on long-term growth and efficiency.
Whether you’re a beginner or an experienced investor, IVV offers a compelling blend of low costs, high performance, and dependable market exposure.
4. Invesco S&P 500 Equal Weight ETF (NYSEARCA: RSP)
Copy link to section- Current price: $164.87
- AUM: $54.46 billion
- Annual expense ratio: 0.20%
- YTD performance: 4.45%
- Annual dividend yield: 1.57%
The Invesco S&P 500 Equal Weight ETF (RSP) offers a unique twist on traditional S&P 500 investing by equally weighting all stocks within the index. This approach means that smaller companies within the S&P 500 get a larger representation compared to the market-cap weighted counterparts, potentially offering greater exposure to mid-cap and smaller large-cap stocks.
By rebalancing quarterly, RSP ensures its holdings reflect current market conditions, reducing the risk of overexposure to a few large companies dominating the index. Despite a modest YTD performance of 4.45%, RSP’s diversified approach appeals to investors looking to spread their risk across a broader spectrum of the market.
RSP’s sector allocation underscores its balanced approach, with significant exposure not only to large-cap blends but also mid-cap and small-cap segments. This diversification is reflected in its holdings, which include tech giants like NVIDIA and Micron Technology alongside energy players like NextEra Energy and NRG.
Such a mix not only mitigates sector-specific risks but also positions RSP as a versatile choice for those seeking a more even distribution of risk and return within the S&P 500 universe.
5. iShares S&P 500 Value ETF (NYSEARCA: IVE)
Copy link to section- Current price: $181.42
- AUM: $32.28 billion
- Annual expense ratio: 0.18%
- YTD performance: 3.73%
- Annual dividend yield: 1.67%
The iShares S&P 500 Value ETF (IVE) offers investors a strategic entry into undervalued segments of the U.S. equity market, focusing on large-cap companies with attractive value metrics. With an expense ratio of 0.18%, IVE presents a cost-efficient avenue for those looking to diversify their portfolio with value-oriented stocks.
This ETF tracks the S&P 500 Value Index, which selects constituents based on metrics like Price/Book Value and Price/Earnings ratios, aiming to capture companies potentially trading below their intrinsic worth.
As of June 17, 2024, IVE boasts assets under management totaling $32.28 billion and a daily trading volume of 482,000 shares, ensuring ample liquidity for investors. Despite its modest YTD performance of 3.73%, IVE’s focus on established companies with stable earnings profiles positions it favorably in a market environment where value stocks are increasingly sought after.
Investors seeking a balance of dividends and potential capital appreciation may find IVE particularly appealing as a complement to growth-focused holdings in their portfolios.
The outlook for value investing in 2024 remains optimistic amidst expectations of a more favorable interest rate environment. Historically, value stocks have shown resilience in such conditions, potentially benefiting investors through both dividend income and growth opportunities.
Where to buy the best S&P 500 ETFs
Copy link to sectionYou can buy shares in any of the ETFs on this page by clicking the links below. These brokers all offer a quick and easy way to start investing and you can create an account in just a few minutes.
eToro offers real assets only, no CFD products. eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the BD.
Plus500
Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What is an S&P 500 ETF?
Copy link to sectionIt’s an investment fund that lets you buy a piece of the S&P 500 index, a list of the 500 largest companies in America. By buying a share in an S&P 500 ETF, you can make an investment in a wide range of high performing stocks from different industries and benefit from the collective performance of all companies on the list.
An ETF, or exchange-traded fund, pools money together from lots of different investors and uses it to invest in a particular index, sector, or asset. It trades on the stock market itself, so you can buy and sell shares in the fund at any time. The fact it’s so easy to invest in an ETF and that it gives you access to a range of stocks makes it an excellent choice for beginners.
Are S&P 500 ETFs a good investment?
Copy link to sectionIt is if you’re looking for a simple, inexpensive, and reliable way to invest in all the top US companies. It’s the best way to create a ‘set and forget’ investment strategy where you can put money in at regular intervals and build your wealth over a long period.
There are a couple of cautionary notes, however. You should beware of ETFs that are too heavily weighted towards the top companies, as this can reduce the benefits of diversification. An S&P 500 ETF also naturally misses out on some geographical diversification as well.
Despite that, these ETFs represent excellent investment opportunities. You can sign up to a broker and start buying shares in one through the link below, or find the latest stock market news at the bottom of the page.
Methodology: How we choose the best S&P 500 ETFs
Copy link to sectionAt Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.
- Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
- ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
- Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
- Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
- Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.
