Which S&P 500 fund is best? (2024)

Which S&P 500 fund is best?

Vanguard S&P 500 ETF (VOO)

Expense ratio: 0.03 percent. That means every $10,000 invested would cost $3 annually. Who is it good for?: Great for investors looking for a broadly diversified index fund at a low cost to serve as a core holding in their portfolio.

What are the best S&P 500 index funds?

What's the best S&P 500 index fund?
Index fundMinimum investmentExpense ratio
Vanguard 500 Index Fund - Admiral Shares (VFIAX)$3,000.0.04%.
Schwab S&P 500 Index Fund (SWPPX)No minimum.0.02%.
Fidelity 500 Index Fund (FXAIX)No minimum.0.015%.
Fidelity Zero Large Cap Index (FNILX)No minimum.0.0%.
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Mar 1, 2024

How do I choose a S&P 500 index fund?

How To Choose an S&P 500 Index Fund
  1. Expense ratio. As index funds are passively managed, expense ratios, which represent the fees you pay for the upkeep of your fund, should be nominal. ...
  2. Minimum investment. ...
  3. Dividend yield. ...
  4. Inception date.
Mar 1, 2024

What is the best platform to invest in S&P 500?

Compare the Best Online Brokers
Fidelity InvestmentsBest Overall, Best for Low Costs, Best for ETFs4.8
TD AmeritradeBest for Beginners and Best Mobile App4.5
TastyworksBest for Options3.9
Interactive BrokersBest for Advanced Traders and Best for International Trading4.2
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Is Vanguard S&P 500 a good investment?

Vanguard S&P 500 ETF (VOO)

Expense ratio: 0.03 percent. That means every $10,000 invested would cost $3 annually. Who is it good for?: Great for investors looking for a broadly diversified index fund at a low cost to serve as a core holding in their portfolio.

What is the most popular S&P 500?

In terms of total assets, SPY reigns supreme as the most popular S&P 500 ETF.

What is the main S&P 500 index fund?

Top S&P 500 index funds in 2024
Fund (ticker)5-year annual returnsMinimum investment
SPDR S&P 500 ETF Trust (SPY)15.2%None
iShares Core S&P 500 ETF (IVV)15.2%None
Schwab S&P 500 Index (SWPPX)15.2%None
Vanguard 500 Index Fund (VFIAX)15.2%$3,000
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Mar 11, 2024

How should a beginner invest in the S&P 500?

The easiest way is to invest in an S&P 500 index fund. You can do this in a tax-advantaged account like a 401(k), IRA, HSA, or 529 plan. You could also open a taxable brokerage account to purchase an S&P 500 index fund.

Should I just put all my money in S&P 500?

Yes, that's a reasonably good strategy. If you put all your portfolio in SPY you'll match the performance of the S&P 500, which most people consider the benchmark for a good return. Warren Buffet has even advocated this strategy many times. However, in most recent years the Nasdaq has outperformed the S&P.

Should I just put my money in S&P 500?

If you don't want to put a lot of effort into managing your investments, then S&P 500 ETFs are a good solution. But if you're willing to do the work, then you might do even better in the long run with a portfolio of hand-picked stocks (although, the odds are against you).

Does Warren Buffett buy S&P 500?

Berkshire owns shares in two prominent S&P 500 funds, but they're far from the only ones on the market. Each one you come across will give you roughly the same exposure and roughly the same returns. The major differentiator is cost. Take the two funds in Buffett's portfolio.

Which mutual fund is better than S&P 500?

10 funds that beat the S&P 500 by over 20% in 2023
Fund2023 performance (%)5yr performance (%)
MS INVF US Insight52.2634.65
Sands Capital US Select Growth Fund51.376.97
Natixis Loomis Sayles US Growth Equity49.56111.67
T. Rowe Price US Blue Chip Equity49.5481.57
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Jan 4, 2024

Are all S&P 500 index funds the same?

Among the biggest differences with index funds is the fees they charge. Funds that are otherwise virtually identical--meaning they track the same index--can nonetheless produce different returns based on their fees. That's because fund fees are deducted from fund returns.

How much would $1000 invested in the S&P 500 in 1980 be worth today?

In 1980, had you invested a mere $1,000 in what went on to become the top-performing stock of S&P 500, then you would be sitting on a cool $1.2 million today.

How much would $10,000 invested in S&P 500?

Assuming an average annual return rate of about 10% (a typical historical average), a $10,000 investment in the S&P 500 could potentially grow to approximately $25,937 over 10 years.

What are the disadvantages of the S&P 500 index?

The bottom line on the S&P 500

But this index does have some shortcomings. Its market-cap weightings may favor some companies, or sectors, over others; the bandwidth doesn't always reflect the entire domestic stock market, and it excludes companies that aren't based in the US.

What is better S&P 500 index fund or ETF?

The Bottom Line. Both index mutual funds and ETFs can provide investors with broad, diversified exposure to the stock market, making them good long-term investments suitable for most investors. ETFs may be more accessible and easier to trade for retail investors because they trade like shares of stock on exchanges.

Is it smart to invest in VOO?

Summary. Investing in the S&P 500 index fund, such as VOO, is a winning long-term strategy. Historical data shows that the market has consistently gone higher despite obstacles and downturns.

What is the cheapest S&P 500 index fund?

Lowest Cost S&P 500 Index Fund: Fidelity 500 Index Fund (FXAIX)
  • Expense Ratio: 0.015%
  • 2022 Return: -18.13%
  • Yield: 1.33%
  • Assets Under Management (AUM): $373.8 billion.
  • Minimum Investment: $0.
  • Inception Date: Feb. 17, 1988 (Share Class Inception Date: May 4, 2011)
  • Issuing Company: Fidelity23.

How do I choose an index fund?

Your index fund should mirror the performance of the underlying index. To check, look at the index fund's returns on the mutual fund quote page. It shows the index fund's returns during several time periods, compared with the performance of the benchmark index. Don't panic if the returns aren't identical.

Does S&P 500 pay dividends?

The S&P 500 index tracks some of the largest stocks in the United States, many of which pay out a regular dividend. The index's dividend yield is the total dividends earned in a year divided by the index's price. Historical dividend yields for the S&P 500 have typically ranged from between 3% to 5%.

What is the most popular Vanguard index fund?

Some popular Vanguard index funds include:
  • Vanguard 500 Index Fund (VFIAX) ...
  • Vanguard Total Stock Market Index Fund (VTSAX) ...
  • Vanguard Total Bond Market Index Fund (VBTLX) ...
  • Vanguard Balanced Index Fund (VBIAX) ...
  • Vanguard Growth Index Fund (VIGAX) ...
  • Vanguard Small Cap Index Fund (VSMAX)
Mar 1, 2024

How much do you need to invest in S&P 500 to become a millionaire?

If the S&P 500 outperforms its historical average and generates, say, a 12% annual return, you would reach $1 million in 26 years by investing $500 a month.

Is it always a good time to invest in S&P 500?

Since 1970, in this scenario, the S&P 500 produced an average annualized return of nearly 11% over the following decade. That's not too shabby. Armed with this uplifting information, it's obvious that it's always a good time to be a buyer of stocks.

What is the average return on investment for the S&P 500?

The average yearly return of the S&P 500 is 10.22% over the last 30 years, as of the end of February 2024. This assumes dividends are reinvested. Adjusted for inflation, the 30-year average stock market return (including dividends) is 7.5%.

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