Best S&P 500 ETFs: 10 Top Funds For 2025

The Commonplace & Poor’s 500 – the S&P 500 – is the benchmark inventory index in america, and it’s come to represent the inventory market as an entire. The S&P 500 has a powerful document of returns, averaging about 10 % per yr over lengthy intervals, and it’s straightforward for buyers to purchase the index by means of an exchange-traded fund (ETF), getting instant publicity to all its shares. 

Listed here are the most effective S&P 500 ETFs in addition to some different funds primarily based on the S&P 500 for buyers to think about. 

Greatest S&P 500 ETFs

The funds beneath spend money on the S&P 500 in the identical weighting because the official index. As a result of the S&P 500 is weighted by market capitalization, bigger corporations have a bigger weighting within the index. The funds right here attempt to intently mirror the efficiency of the official S&P 500. These funds are likely to have low expense ratios, which is the price you’ll pay to the fund administration firm. 

The funds beneath are all index funds since they monitor a particular index and make investments passively with the fund’s administration reflecting solely official modifications within the index. You too can discover the most effective Nasdaq funds should you’re trying to spend money on tech shares.

(Fund knowledge as of June 19, 2025)

Vanguard S&P 500 ETF (VOO)

This Vanguard fund tracks the S&P 500 and is without doubt one of the firm’s hottest funds. 

5-year annualized return: 15.6 %

Expense ratio: 0.03 %

iShares Core S&P 500 ETF (IVV)

The iShares S&P 500 fund is one other common solution to spend money on the benchmark index. 

5-year annualized return: 15.8 %

Expense ratio: 0.03 %

SPDR S&P 500 ETF Belief (SPY)

This State Road fund is the granddaddy of ETFs within the U.S. and tracks the S&P 500 index however at a considerably increased price than rival funds. 

5-year annualized return: 15.7 %

Expense ratio: 0.095 %

SPDR Portfolio S&P 500 ETF (SPLG)

This State Road fund features precisely the identical as its sister fund above, nevertheless it comes with probably the most aggressive expense ratio right here. 

5-year annualized return: 15.8 %

Expense ratio: 0.02 %

Different funds to spend money on the S&P 500 with a twist

The funds above monitor the common S&P 500 index, so their efficiency intently follows that index. However the funds beneath slice and cube the index for a unique set of returns than the official S&P 500 index. Some funds embrace all of the shares within the index however weigh them otherwise, whereas different funds carve out a bit of development or worth shares and base their fund on these.  

Invesco S&P 500 Equal Weight ETF (RSP) 

This Invesco fund weights the a whole bunch of shares within the S&P 500 equally (not by market cap), so every inventory has a couple of 0.2 % share of the fund. This fund will do higher than an everyday S&P 500 fund when smaller shares are outperforming and bigger shares are lagging. 

5-year annualized return: 13.3 %

Expense ratio: 0.20 %

iShares S&P 500 Development ETF (IVW)

This iShares fund tracks a subset of the S&P 500 that features the fastest-growing shares, as measured by elements akin to three-year sales-per-share development and the inventory’s momentum.  

5-year annualized return: 16.2 %

Expense ratio: 0.18 %

iShares S&P 500 Worth ETF (IVE)

This iShares fund tracks a subset of the S&P 500 that features the value-priced shares, as measured by elements akin to a inventory’s low price-to-earnings ratio and price-to-sales ratio.  

5-year annualized return: 14.0 %

Expense ratio: 0.18 %

SPDR Portfolio S&P 500 Development ETF (SPYG)

This State Road fund owns shares amongst a subset of the fastest-growing S&P 500 shares, as decided by the inventory’s momentum, gross sales development and earnings development in comparison with value change.  

5-year annualized return: 18.6 %

Expense ratio: 0.04 %

SPDR Portfolio S&P 500 Worth ETF (SPYV)

This State Road fund owns shares amongst a subset of the value-priced S&P 500 shares, as decided by the inventory’s price-earnings ratio, price-to-sales ratio and price-to-book ratio.

5-year annualized return: 16.4 %

Expense ratio: 0.04 %

Vanguard S&P 500 Development ETF (VOOG)

This Vanguard fund tracks a subset of the S&P 500 that features the value-priced shares, as decided by elements akin to a inventory’s low price-earnings ratio and price-to-sales ratio.  

5-year annualized return: 16.3 %

Expense ratio: 0.07 %

Dangers of S&P 500 ETFs

Whereas ETFs may be a good way to speculate available in the market, they nonetheless have some downsides:

• Volatility: An ETF may be extremely risky, though it tends to be much less risky than particular person shares. Within the quick time period, an ETF can transfer up or down, and also you’ll have to decide to holding on for years to benefit from the fund’s sturdy long-term returns. 
• Monitoring danger: An ETF monitoring a particular index could not completely mirror the returns of the index, and it’s known as monitoring danger. Within the case of those S&P 500 funds, it’s not an enormous danger, however different sorts of index funds could fluctuate broadly, particularly in the event that they’re investing in much less liquid shares. 
• Structural prices: ETFs that use leverage to multiply your returns or that attempt to revenue on shares falling have additional prices that may make them extra pricey. These additional prices can drag on their returns over time and their capability to trace their goal index. That’s not a difficulty for the S&P 500 funds above, nevertheless it’s one thing to look at should you’re investing in leveraged ETFs. 

Backside line

An S&P 500 index fund may be a good way to speculate available in the market, and also you gained’t want lots of investing experience to take action. In truth, legendary investor Warren Buffett has lengthy suggested most buyers to easily purchase the index quite than spend money on particular person shares. It’s extremely straightforward to purchase an S&P 500 fund, and you are able to do so at any of the most effective brokers for inventory buying and selling.