Best S&P 500 ETFs April 2024 (2024)

Investing

Tony Dong

Best S&P 500 ETFs April 2024 (1)

Farran Powell

Farran Powell

Farran Powell

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Updated 9:02 a.m. UTC April 2, 2024

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Due to their versatility and simplicity, you can use S&P 500 exchange-traded funds as core portfolio building blocks.

Our selection of the best S&P 500 ETFs of 2024 have a 10-year annualized tracking error of 0.28% or less, a net expense ratio of 0.2% or less, at least $1 billion in assets under management, and a minimum 10-year track record of performance.

Why trust our investing experts

Experienced fund analysts select our best fund selections based on screening several must-have metrics. These metrics include but are not limited to assets under management, expense ratio, strategy, management, minimum investment requirements, turnover and fees. You can read more about our methodology below.

  • 3,000+ ETFs screened.
  • 3 levels of fact-checking.
  • 3-step editorial review.

Best S&P 500 ETFs

  • .
  • 500 ETF (IVV).
  • .
  • .
  • .

SPDR S&P 500 ETF Trust (SPY)

Best S&P 500 ETFs April 2024 (3)

Why it made our list

The SPDR S&P 500 ETF Trust reigns supreme as the most popular S&P 500 ETF. The first ETF launched in the U.S. has maintained this status thanks to its strong institutional backing and first-mover advantage. SPY doesn’t have the lowest expense ratio on our list. But it makes up for this in liquidity.

This ETF has one of the highest trading volumes on the market. So it’s easy to fill even large orders quickly. Due to its liquidity, SPY remains a favorite among traders.

Pros and cons

Pros

  • Extremely easy to buy and sell.
  • Good options chain.
  • High daily volume.

Cons

  • Higher expense ratio than some competitors.
  • Higher 10-year tracking error than lower-cost competitors.
  • Lack of international equity exposure.

More details

  • Expense ratio: 0.095%.
  • Total assets: $530.9 billion.
  • 30-day SEC yield: 1.23%.
  • 10-year annualized return: 12.85%.

Vanguard S&P 500 ETF (VOO)

Best S&P 500 ETFs April 2024 (4)

Why it made our list

Vanguard is best known for its low-cost . You can access it in ETF form as the Vanguard S&P 500 ETF. VOO is traded on an exchange. Its price is updated throughout the day instead of at the end of the day.

VOO’s minimum required investment is lower than its index mutual fund counterpart’s at the price of a single share. And it’s a third as expensive as the SPDR S&P 500 ETF Trust. This makes it an economical option for S&P 500 exposure. VOO also comes with the backing of a reputable and long-standing fund manager.

Pros and cons

Pros

  • Low expense ratio.
  • Low portfolio turnover rate.
  • Low tracking error relative to the index.

Cons

  • Less well-developed options chain.
  • High concentration in technology sector stocks.
  • Lack of international equity exposure.

More details

  • Expense ratio: 0.03%.
  • Total assets: $435 billion.
  • 30-day SEC yield: 1.33%.
  • 10-year annualized return: 12.91%.

SPDR Portfolio S&P 500 ETF (SPLG)

Best S&P 500 ETFs April 2024 (5)

Why it made our list

Consider the SPDR Portfolio S&P 500 ETF if you want to stick to a name brand but are looking for a lower-cost alternative to the SPDR S&P 500 ETF Trust. SPLG doesn’t offer the same trading volume and options chain. But you will get a lower expense ratio and a lower price per share.

You might prefer this ETF if you seek a long-term buy and hold and are not actively trading or using options.

Pros and cons

Pros

  • Very low expense ratio.
  • Low portfolio turnover rate.
  • Lower 10-year tracking error than the SPDR S&P 500 ETF Trust.

Cons

  • It’s slightly less liquid than the SPDR S&P 500 ETF Trust.
  • High concentration in technology sector stocks.
  • No small-cap equity exposure.

More details

  • Expense ratio: 0.02%.
  • Total assets: $33.5 billion.
  • 30-day SEC yield: 1.32%.
  • 10-year annualized return: 12.83%.

Invesco S&P 500 Equal Weight ETF (RSP)

Best S&P 500 ETFs April 2024 (6)

Why it made our list

A common complaint regarding S&P 500 ETFs is the heavy concentration in technology sector stocks and the top 10 holdings. To remedy this, opt for the Invesco S&P 500 Equal Weight ETF.

The 500 stocks in RSP are weighted equally. This ensures a more diverse representation of companies and sectors. Technology represents a smaller portion of the portfolio as a result. So RSP’s performance fluctuates from the S&P 500 index’s return, for better or worse, depending on the period.

The turnover rate on this ETF is fairly high due to the quarterly rebalancing. This can result in greater taxes and lower efficiency.

Pros and cons

Pros

  • More evenly balanced between sectors.
  • The top 10 holdings do not dominate the ETF.
  • Greater exposure to mid-cap stocks.

Cons

  • Higher expense ratio than other ETFs.
  • Equal weighting methodology results in a higher portfolio turnover rate.
  • Prone to underperform the benchmark index and incur a higher tracking error.

More details

  • Expense ratio: 0.2%.
  • Total assets: $53.2 billion.
  • 30-day SEC yield: 1.66%.
  • 10-year annualized return: 10.64%.

Compare the best S&P 500 ETFs

FUNDTICKEREXPENSE RATIOTOTAL ASSETS30-DAY SEC YIELD

SPDR S&P 500 ETF Trust

SPY

0.095%

$530.9 billion

1.23%

iShares Core S&P 500 ETF

IVV

0.03%

$457.1 billion

1.36%

Vanguard S&P 500 ETF

VOO

0.03%

$435 billion

1.33%

SPDR Portfolio S&P 500 ETF

SPLG

0.02%

$33.5 billion

1.32%

Invesco S&P 500 Equal Weight ETF

RSP

0.2%

$53.2 billion

1.66%

Methodology

We created our ranking of the best S&P 500 ETFs by applying a screen of several must-have metrics:

  • Tracking error. We assessed how much an ETF’s 10-year annualized performance differed from the S&P 500 index’s 10-year annualized return of 11.8% as of Dec. 31, 2023.
  • AUM. All the ETFs on this list have accrued at least $1 billion in assets under management. ETFs with a higher AUM tend to have higher trading volume, tighter bid-ask spreads and more popularity.
  • Expense ratio. We capped the acceptable expense ratio at 0.2%. The expense ratio is deducted directly from the gross returns of the ETF. Keeping it as low as possible can help an S&P 500 ETF track its benchmark index more closely.
  • Management style. All the ETFs on this list replicate the exact holdings of the S&P 500 index and its returns in a passively managed structure. Actively managed ETFs that use the S&P 500 index as an underlying asset were excluded.

This set of criteria allows you to screen for S&P 500 ETFs that are passively managed, have a low cost, incur minimal tracking error and have an established market presence backed by a competent fund manager.

An experienced fund analyst selected the funds above, but they may not be right for your portfolio. Before purchasing any of these funds, do plenty of research to ensure they align with your financial goals and risk tolerance.

Why other S&P 500 ETFs didn’t make the cut

We focused on passively managed S&P 500 ETFs for our ranking. Passively managed S&P 500 ETFs replicate the benchmark index holdings and track its returns as closely as possible.

We excluded actively managed ETFs and factor-based ETFs. These include ETFs that target leveraged, inverse or enhanced income exposure for the . These also include ETFs that attempt to isolate a particular style of stock, such as value, growth, low volatility or dividend aristocrat, from the S&P 500.

We made this decision after reviewing the latest SPIVA Scorecard from the S&P Dow Jones Indices. The SPIVA scorecard measures the performance of actively managed funds worldwide against their index benchmarks. Roughly 88% of U.S. large-cap funds underperformed the S&P 500 over the last 15 years, as of Dec. 31, 2023.

Actively managed and factor S&P 500 ETFs might have uses if you want to try to outperform the market and generate higher yields or hedge against crashes. But passively managed S&P 500 ETFs provide the best blend of low fees, high diversification, simplicity and transparency. You can capture as much of the S&P 500 index’s returns as possible net of fee with these ETFs.

Final verdict

​​“ETFs tracking the S&P 500 index can appeal to investors who want broadly diversified exposure to large-cap U.S. stocks with very low costs and high liquidity,” said Michelle Louie, senior portfolio manager at Vanguard’s Equity Index Group.

Our recommendation for the best S&P 500 ETF is the iShares Core S&P 500 ETF due to its ultralow fees, minimal tracking error, strong trading volume and robust assets under management. IVV offers the best value proposition if you’re a long-term buy-and-hold investor who isn’t looking to trade daily or utilize options.

About the S&P 500

The S&P 500 index, established in 1957, is one of the leading benchmarks for U.S. equity performance. It tracks 500 companies, which are weighted by market capitalization. The larger the company, the more significant its weight in the index. The S&P 500 covers about 80% of the domestic U.S. equity market and offers a broad representation of its performance.

A committee chooses the companies for the index. It reviews their size, liquidity and profitability. This process ensures the S&P 500 reflects the performance of the stock market.

How to pick the best S&P 500 ETF

Focus on fees to choose the best S&P 500 ETF. All passive S&P 500 ETFs track the same underlying index. So differences in performance largely can be attributed to varying expense ratios.

You can pick S&P 500 ETFs with higher returns net of fees and lower tracking errors relative to the underlying index by keeping expense ratios low. If fees are equal, consider the ETF provider’s reputation, portfolio turnover rate, AUM and bid-ask spread.

Pros and cons of investing in S&P 500 ETFs

Investing in an S&P 500 ETF has advantages and disadvantages.

Pros

  • Ability to capture the returns of a long-standing benchmark index.
  • High liquidity means it is easy to buy and sell shares.
  • Historically strong returns over long periods of efficiency.

Cons

  • Lack of small-cap stocks.
  • Lack of international diversification.
  • Historically high volatility during bear markets and crashes.

Considering your objectives, risk tolerance and time horizon are key when deciding whether an S&P 500 ETF is right for you.

Ways to invest in the S&P 500

You can invest in the S&P 500 in two main ways:

  1. Through individual stocks that are included in the S&P 500.
  2. Through S&P 500 funds.

Experts generally agree the best way to invest in the S&P 500 is through an exchange-traded fund or index fund. While there are differences between these approaches, both offer low costs and diversification.

Frequently asked questions (FAQs)

The S&P 500 is a popular investment due to several factors.

The first is its longevity. The index launched in March 1957 and has since been a barometer of U.S. market performance.

The S&P 500 is also popular due to its high historical returns. On average, the S&P 500 has returned an annualized 10% with dividends reinvested.

Finally, the S&P 500 has been endorsed by many investing icons, including Warren Buffett, who disclosed it as an intended holding for his estate upon his passing.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Tony Dong

BLUEPRINT

Tony Dong is a freelance financial writer with bylines in U.S. News and World Report, the NYSE, the Nasdaq, The Motley Fool and Benzinga. He lives in Vancouver, Canada and is an avid watch collector.

Farran Powell

BLUEPRINT

Farran Powell is the lead editor of investing at USA TODAY Blueprint. She was previously the assistant managing editor of investing at U.S. News and World Report. Her work has appeared in numerous publications including TheStreet, Mansion Global, CNN, CNN Money, DNAInfo, Yahoo! Finance, MSN Money and the New York Daily News. She holds a BSc from the London School of Economics and an MA from the University of Texas at Austin. You can follow her on Twitter at @farranpowell.

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Best S&P 500 ETFs April 2024 (2024)

FAQs

What is the best ETF to invest in 2024? ›

Best ETFs as of May 2024
TickerFund name5-year return
SMHVanEck Semiconductor ETF31.19%
SOXXiShares Semiconductor ETF26.35%
XLKTechnology Select Sector SPDR Fund21.30%
IYWiShares U.S. Technology ETF20.70%
1 more row
May 1, 2024

What is the best performing S&P 500 ETF? ›

What's the best S&P 500 ETF?
ETFTickerAnnualized 5-year return
iShares Core S&P 500 ETFIVV15.01%
SPDR S&P 500 ETF TrustSPY14.14%
Vanguard S&P 500 ETFVOO13.15%
May 1, 2024

Is 2024 a good year to invest in stocks? ›

Anthony Denier, CEO of the trading platform Webull, says he believes the stock market will ultimately post a positive return in 2024 as investors anticipate interest rate cuts by the Fed. However, he adds, we probably won't see as big of a rally as we did in 2023.

What is the best performing ETF in last 5 years? ›

The Top 5 Best Performing ETFs of the Last 5 Years
  • PSI.
  • ITB.
  • SOXX.
  • SMH.
  • GBTC.
Apr 17, 2024

What stock will boom in 2024? ›

2024's 10 Best-Performing Stocks
Stock2024 Return Through April 30
Avidity Biosciences Inc. (RNA)166.6%
Trump Media & Technology Group Corp. (DJT)185.3%
Canopy Growth Corp. (CGC)191.2%
Super Micro Computer Inc. (SMCI)202.1%
6 more rows
May 3, 2024

What to invest in 2024? ›

Overview: Best investments in 2024
  • High-yield savings accounts. Overview: A high-yield online savings account pays you interest on your cash balance. ...
  • Long-term certificates of deposit. ...
  • Long-term corporate bond funds. ...
  • Dividend stock funds. ...
  • Value stock funds. ...
  • Small-cap stock funds. ...
  • REIT index funds.

How many S&P 500 ETFs should I buy? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

What is the most successful ETF? ›

100 Highest 5 Year ETF Returns
SymbolName5-Year Return
FTECFidelity MSCI Information Technology Index ETF22.68%
SPUUDirexion Daily S&P 500 Bull 2x Shares22.56%
IXNiShares Global Tech ETF22.54%
VGTVanguard Information Technology ETF22.54%
93 more rows

What ETF doubles the S&P 500? ›

The Direxion Daily S&P 500® Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the S&P 500® Index.

What stock will double in 2024? ›

2 Stocks That Can Double Again in 2024
  • SoundHound AI and Sweetgreen are up 174% and 116% so far in 2024.
  • SoundHouse AI is seeing its platform for conversational intelligence explode in popularity.
  • Sweetgreen has quadrupled over the past year, but it's still a broken IPO with potential to harvest.
Mar 27, 2024

What is the SP 500 prediction for 2024? ›

The estimates from strategists put the median target for the S&P 500 at 5,200 by the end of 2024, implying a decline of less than 1% from Friday's level, according to MarketWatch calculations. Heading into 2024, the median target was around 5,000 (see table below).

How high will the S&P 500 go in 2024? ›

The high-water mark for stock projections in 2024 has once again moved up. In a note to clients on Monday, Wells Fargo's head of equity strategy, Christopher Harvey, boosted his year-end target for the S&P 500 (^GSPC) to 5,535 from 4,625.

Which ETF has the best 10-year return? ›

Top 10 ETFs by 10-year Performance
TickerFund10-Yr Return
VGTVanguard Information Technology ETF19.60%
IYWiShares U.S. Technology ETF19.58%
IXNiShares Global Tech ETF18.20%
IGMiShares Expanded Tech Sector ETF17.95%
6 more rows

How many ETFs should I own? ›

The majority of individual investors should, however, seek to hold 5 to 10 ETFs that are diverse in terms of asset classes, regions, and other factors. Investors can diversify their investment portfolio across several industries and asset classes while maintaining simplicity by buying 5 to 10 ETFs.

What is the best performing ETF in February 2024? ›

In February 2024, the top-performing stock ETFs included mid-cap growth fund Renaissance IPO ETF and Invesco S&P MidCap 400 Pure Growth ETF. The month's worst performers included Global X SuperDividend US ETF and Franklin US Low Volatility High Dividend Index ETF.

What's the best ETF to buy right now? ›

  • ProShares Bitcoin Strategy ETF (BITO)
  • Global X Copper Miners ETF (COPX)
  • YieldMax NVDA Option Income Strategy ETF (NVDY)
  • iShares Semiconductor ETF (SOXX)
  • Simplify Interest Rate Hedge ETF (PFIX)
  • WisdomTree Japan Hedged Equity Fund (DXJ)
  • Invesco S&P 500 Momentum ETF (SPMO)
May 7, 2024

Which ETF is best for long-term investment? ›

Overview of 15 Best ETFs in India
  • HDFC Nifty50 Value 20 ETF. ...
  • Invesco India Gold ETF. ...
  • Nippon India Silver ETF. ...
  • Kotak Nifty PSU Bank ETF. ...
  • HDFC Nifty100 Low Volatility 30 ETF. ...
  • Bharat Bond ETF - April 2030. ...
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  • ICICI Prudential Nifty Midcap 150 Etf.
Mar 27, 2024

What is the best ETF for February 2024? ›

3 Great Growth ETFs for 2024
  • Schwab U.S. Large-Cap Growth ETF SCHG.
  • Vanguard International Dividend Appreciation ETF VIGI.
  • iShares MSCI USA Quality ETF QUAL.
Mar 26, 2024

What is the most profitable ETF to invest in? ›

10 Best-Performing ETFs of 2024
ETFExpense RatioAssets Under Management
VanEck Semiconductor ETF (SMH)0.35%$17.9 billion
Simplify Interest Rate Hedge ETF (PFIX)0.50%$163 million
Global X Copper Miners ETF (COPX)0.65%$2.3 billion
Invesco S&P MidCap Momentum ETF (XMMO)0.34%$2.1 billion
5 more rows

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