S&P 500 ETFs
0 stocks · Updated Mar 25, 2026
S&P 500 ETFs track the 500 largest US public companies by market cap, representing approximately 80% of total US stock market value. The S&P 500 is the world's most followed equity benchmark, making S&P 500 ETFs the foundation of millions of investment portfolios. Three dominant options — SPY (State Street), IVV (BlackRock), and VOO (Vanguard) — together hold over $1.5 trillion in assets, making them among the most liquid investment vehicles ever created.
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Frequently Asked Questions
What is the S&P 500?
The S&P 500 is an index of 500 large US companies selected by a committee based on market cap, liquidity, and profitability criteria. It is market-cap-weighted, meaning larger companies have greater influence on index returns.
What is the difference between SPY, IVV, and VOO?
All three track the S&P 500 but differ in structure and cost. SPY (oldest, most liquid, 0.0945% expense ratio) is preferred by traders. IVV and VOO have lower expense ratios (0.03%) and are better for long-term buy-and-hold investors.
How much has the S&P 500 returned historically?
The S&P 500 has returned approximately 10.5% per year on average since 1926, including dividends. Inflation-adjusted, the real return is approximately 7-8%. These averages mask enormous year-to-year variation including years with 50%+ declines.
Should I invest a lump sum or dollar-cost average into S&P 500 ETFs?
Research shows lump-sum investing outperforms dollar-cost averaging approximately two-thirds of the time because markets tend to rise over time. However, DCA reduces regret risk and is psychologically easier — both approaches are vastly superior to not investing.