The 8 Best S&P 500 ETFs Of August 2024

August 28, 2024 09:10 AM PDT | By Team Kalkine Media
 The 8 Best S&P 500 ETFs Of August 2024
Image source: Shutterstock

S&P 500 ETFs are a key component of many portfolios, often serving as a benchmark for long-term performance. Outperforming the S&P 500 is challenging, which is why trillions of dollars are invested in funds tracking this index.

What Are S&P 500 ETFs?

These exchange-traded funds (ETFs) aim to mirror the performance of the S&P 500, a market-capitalization-weighted index representing 500 leading U.S. companies. ETFs allow investors to buy shares that reflect the index’s performance, trading them throughout the day like stocks. The most well-known S&P 500 ETF, SPY, was launched in 1993 and remains a popular choice due to its liquidity and net assets.

Core vs. Tactical S&P 500 ETFs

Core S&P 500 ETFs closely track the index, with minimal deviation and low fees, making them a straightforward option for investors. These funds also provide dividends generated by the companies in the index. Tactical S&P 500 ETFs, on the other hand, may introduce slight variations in portfolio makeup, which can lead to higher fees and differences in performance compared to the core index.

Key Factors to Consider When Choosing an S&P 500 ETF

  • Expense Ratios: Most S&P 500 ETFs are passively managed, which keeps fees low. However, if an ETF charges higher fees, it's worth reviewing its performance to see if the additional cost is justified.
  • Liquidity: For long-term, hands-off investors, liquidity may not be a major concern. However, for active traders, choosing a more liquid fund with higher trading volumes ensures flexibility in buying and selling shares without impacting returns.
  • Inception Date: Older ETFs offer a longer performance track record, which provides valuable insights into how the fund has performed across different economic conditions.
  • Share Price and Investment Minimums: Unlike index funds, ETFs typically have no minimum investment requirements, making it easier to start investing with the purchase of just one share.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.


Sponsored Articles


Investing Ideas

Previous Next