Why SPLG S&P500 ETF Is My Core Foundational US ETF
πππAugust has been a month with big market moves. On Monday August 5, we experienced a day in which global stock markets underwent a significant correction due to factors such as the US employment data, the Bank of Japan's interest rate hike and geopolitical tensions. That day is referred to as a new "Black Monday".
However the markets recovered rather quickly since then with Jerome Powell at the Jackson Hole meeting indicating that the time has come for an interest rate cut in September.
No matter what happens, markets do not move in straight lines. They go up and down just like a roller coaster. That is why $SPDR Portfolio S&P 500 ETF(SPLG)$ is my core Foundational US ETF that represents the best and the strongest US stocks in just 1 trade.
SPLG is like my anchor ETF that will enable me to get through the turbulent markets. As a small investor with a long term horizon, SPLG has the lowest expense ratio of only 0.02% compared to its big brother $SPDR S&P 500 ETF Trust(SPY)$
SPY is the first US listed ETF and the largest with market capitalisation USD 527.5 billion. It is also the most liquid and the world's most traded ETF with a volume of USD 38.3 billion a day on average. It is the preferred ETF among large institutions and traders.
Since I do not trade frequently and my holding period is long term, SPLG is more suitable for me. It also has a lower entry point at USD 65.67. In contrast SPY is USD 558.30 per unit.
While I cannot predict what will happen in September, I do know that SPLG will grow slow and steadily over time. I have invested in SPLG since 2021 by the dollar cost averaging method and since that time I have not sold a single unit of SPLG but kept adding on to it.
SPLG has rewarded my patience and time in the market with a 28% gain. Warren Buffett has said that in his view, the best thing for most people is to own the S&P500 Index fund. He also said that investing in S&P500 ETFs are a safe way to own shares of the 500 largest US companies across multiple sectors.
Investing does not have to be complicated. For me it is simply buying and holding SPLG and allow the magic of compounding to happen over time.
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- EmilyMarkΒ·08-30TOPAwesome choice! SPLG is a solid foundation for your portfolio. [Applaud][Like]1Report