To The Moon

Best S&P 500 ETFs of March 2023

S&P 500 ETFs have come a long way since State Street Global Advisors revealed the flagship SPDR S&P 500 ETF (SPY) 30 years ago in January 1993.

Since then, many exchange-traded fund managers have launched their own S&P 500 ETFs. ETFs come in varieties these days, from low-cost passive index variants to factor-based ETFs to even exotic actively managed ETFs employing derivatives to target goals such as income or leveraged exposure.

“ETFs tracking the S&P 500 index can appeal to investors who want broadly diversified exposure to large-cap U.S. stocks with very low costs and high liquidity,” says Michelle Louie, senior portfolio manager at Vanguard’s Equity Index Group.

Many investors also use S&P 500 ETFs as core portfolio building blocks due to their versatility and simplicity. “An S&P 500 ETF can be paired with an extended market ETF tracking mid- and small-cap stocks to provide exposure to the broad U.S. market,” Louie adds.

For our selection of the best S&P 500 ETFs, we assessed several based on whether they met stringent criteria. Screening factors included having at least a 10-year annualized tracking error of 0.25% or less, a net expense ratio of 0.2% or less, at least $1 billion in assets under management (AUM) and a minimum 10-year track record of performance.

Read More: https://www.usatoday.com/money/blueprint/investing/best-sp-500-etfs/