Warren Buffett has advised DIY retail investors to simply buy a low-cost S&P 500 index fund and sit back and relax. Here we’ll look at how to invest in the S&P 500 index with the 3 best S&P 500 ETFs – VOO, IVV, and SPY – and why you might want one over the others.

// TIMESTAMPS:

00:00 - Intro - What Is the S&P 500 Index?
01:26 - How To Invest in the S&P 500 with ETFs
02:32 - VOO
03:03 - SPY
03:34 - IVV
03:57 - Conclusion

// SUMMARY:

The S&P 500 Index is simply a curated collection of the 500 largest publicly traded companies in the United States based on total market capitalization.

The index as we know it today was started in 1957. It is probably the most followed stock index, including household names like Apple, Amazon, Disney, Google, Microsoft, Johnson & Johnson, etc. These components are weighted in the index by their size, with the top 10 holdings making up over 25% of the index.

Because the index comprises roughly 82% of the total U.S. stock market and spans all market sectors, it is used as a proxy and benchmark for “the market” as a whole. Whether you’re a beginner or a seasoned investor, the S&P 500 index is a reliable cornerstone of a long-term buy-and-hold investment strategy, providing broad diversification and relatively low risk within U.S. equities.

Now let’s look at how exactly to invest in the S&P 500 using index funds in the form of ETFs - VOO, SPY, and IVV.

Because the S&P 500 index is so popular, there are quite a few ETFs that track the index, hold those underlying stocks, and trade as a single security/ticker, all at low fees. By buying shares of a single fund, you can own all 500 companies in the index.

Proponents of passive, buy-and-hold index investing like Warren Buffett, Jack Bogle, and many others suggest simply finding a highly liquid, low-cost index fund to access the S&P 500 index as the core holding in one’s stocks portfolio.

Since these funds employ passive replication of the index as opposed to active management, they have low fees and high liquidity. All you have to do is buy shares of one of the ETFs here through an online broker and you can say you are invested in the S&P 500.

All 3 of these ETFs are solid choices to invest in the S&P 500 index, so you can’t really go wrong. All 3 have very high AUM and liquidity, and all 3 have a history of tracking the index reliably and accurately. At the time of writing, IVV and VOO have the same expense ratio of 0.03% compared to 0.09% for SPY, so I would go with IVV or VOO. I’m partial to Vanguard, so I use VOO myself.

Day traders might appreciate the greater liquidity of SPY, as it’s the largest and oldest ETF out there, but buy-and-hold investors should prefer the lower fee of VOO or IVV.

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#sp500 #voo #spy #investing #stocks #stockmarket #vanguard

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Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: [ Ссылка ]

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