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Is the S&P 500 a good investment?
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Do managed funds outperform the S&P 500?
Nov 01, 2022 · Vanguard 500 Index Fund Admiral Shares (VFIAX) Expense Ratio 0.04% Minimum Investment $3,000 5-Year Trailing Returns 10.4% Why We Picked It Vanguard is one of the biggest names in the...
- FXAIX and SPY are the best for fees and liquidity, respectively
- Lowest Cost S&P 500 Index Fund: Fidelity 500 Index Fund (FXAI
- Lowest Cost Runner Up: Schwab S&P 500 Index Fund (SWPP
- Lowest Cost Runner Up: Vanguard 500 Index Fund Admiral Shares (VFIA
- Lowest Cost Runner Up: State Street S&P 500 Index Fund Class N (SVSP
- Most Liquid S&P 500 Index Fund: SPDR S&P 500 ETF (SP
The Standard & Poor's 500 Index (S&P 500) is a market-capitalization-weighted index of 500 large-cap U.S. companies that make up 80% of U.S. equities by market cap. It is widely regarded as the best gauge of large-cap U.S. equities and is often referred to as “the market” because it is comprised of stocks that span all market sectors. Some of the S&P 500's largest components include Microsoft Corp. ( MSFT ), Apple Inc. ( AAPL ), Amazon.com Inc. ( AMZN ), Alphabet Inc. ( GOOGL ), and Tesla Inc. (TSLA). 1
There are many funds whose portfolio of stocks are designed to track those of the S&P 500 due to its popularity as a barometer of U.S. equity markets, including both mutual funds and exchange-traded funds (ETFs). The latter type of fund differs from traditional mutual funds in that they are listed on exchanges and trade throughout the day like ordinary stock.
FXAIX is a mutual fund. Because index-tracking funds will follow the performance of the index, one of, if not the, biggest determinant of long-term returns is how much it charges in fees.
Assets Under Management: $399.36 billion
Inception Date: Feb. 17, 1988 (Share Class Inception Date: May 4, 2011)
Issuing Company: Fidelity 2 3
Schwab's S&P 500 index fund seeks to track the total return of the S&P 500 Index. The fund generally invests at least 80% of its net assets (including, for this purpose, any borrowings for investment purposes) in these stocks; typically, the actual percentage is considerably higher. It generally will seek to replicate the performance of the index by giving the same weight to a given stock as the index does.
Assets Under Management: $71.38 billion
Inception Date: May 19, 1997
Issuing Company: Charles Schwab 4 5
Vanguard was the original index fund and still has the largest assets under management, with over $753 billion in its Vanguard 500 Index Fund Admiral Shares, as of Jan. 18, 2022. The investment seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. The fund employs an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index. 6
Assets Under Management: $753.41 billion
Inception Date: Nov. 13, 2000
Issuing Company: Vanguard 7 6
Also in the running is State Street's offering, which also closely tracks the S&P 500 Index. This fund, however, requires a minimum of $10,000 invested.
Assets Under Management: $1.71 billion
Inception Date: Dec. 30, 1992
Issuing Company: State Street 8 9
SPY is an ETF, not a mutual fund, and it's not even the lowest-cost S&P 500 ETF. It is, however, the most liquid S&P 500 fund. Liquidity indicates how easy it will be to trade an ETF, with higher liquidity generally meaning lower trading costs. Trading costs are not a big concern to people who want to hold ETFs long-term, but if you’re interested in trading ETFs frequently, then it’s important to look for high liquidity funds to minimize trading costs.
Assets Under Management: $455.22 billion
Inception Date: Jan. 22, 1993
Issuing Company: State Street 10 11
Mar 28, 2022 · The Best S&P 500 Funds The tip of the indexing pyramid. John Rekenthaler Mar 28, 2022 Mentioned: Schwab® S&P 500 Index (SWPPX) , SPDR® S&P 500 ETF Trust (SPY) , Fidelity® 500...
- John Rekenthaler
Apr 25, 2022 · Objective: Track the performance of the S&P 500 index. SPLG Quant Rating Grades 4. Vanguard S&P 500 ETF ( VOO) As of date: March 31, 2022 1-year performance: 15.62% Expense Ratio:...
- Kent Thune
Nov 26, 2022 · 3 best S&P 500 index funds These three major S&P 500 funds are extremely similar in composition since each tracks the performance of the same index: Vanguard S&P 500 ETF (...