Our post on ETFs vs index funds explains the key differences between the two types of investment tracker. That’s the S&P 500 in the case of the trackers we’re focussing on today.īy replicating the performance of their index, S&P 500 ETFs (and S&P 500 index funds) enable you to efficiently diversify across Corporate America’s most profitable companies at minimal effort and for an incredibly low cost. The part you gain exposure to is defined by the ETF’s benchmark index. Index funds are designed to match – as closely as possible – the return of a particular section of an investible market. S&P 500 ETFs are a type of index fund that track the performance of the 500 largest stocks in the US.
Source: Trustnet and fund provider’s data. In this post, we’ll explain how to pick the best S&P 500 trackers and narrow down the array of choices to a worthy few. Do you want a piece of one of the most successful stock markets in the world? Well, do you? I suspect so, which is why we’ve put together this guide to the Best S&P 500 ETFs and the best S&P 500 index funds.
