Top S&P 500 ETFs | Find The Best S&P 500 ETF | justETF (2024)

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Top S&P 500 ETFs | Find The Best S&P 500 ETF | justETF? ›

The T. Rowe Price Capital Appreciation Equity ETF (TCAF), nearing $2 billion, having launched just one year ago, has outperformed the SPDR S&P 500 ETF Trust (SPY) over the last three months. The active equity ETF has also outperformed the flagship ETF over the last month, down just -0.85% to SPY's -3.4%, per YCharts.

The T. Rowe Price Capital Appreciation Equity ETF (TCAF), nearing $2 billion, having launched just one year ago, has outperformed the SPDR S&P 500 ETF Trust (SPY) over the last three months. The active equity ETF has also outperformed the flagship ETF over the last month, down just -0.85% to SPY's -3.4%, per YCharts.

The S&P 500 simply reflects the market composition. In the long run, the funds' broad diversification, low turnover, and low fees outweigh these risks.” While the two ETFs follow the same strategy, they earn different ratings. VOO earns a top rating of Gold, while SPY earns the next best rating of Silver.

Investing in an S&P 500 fund can instantly diversify your portfolio and is generally considered less risky than purchasing individual stocks directly. Because S&P 500 index funds or ETFs track the performance of the S&P 500, when that index does well, your investment will, too. (The opposite is also true, of course.)

The Direxion Daily S&P 500^® Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the S&P 500^® Index.

This is primarily because VOO holds slightly higher percentages of mega cap stocks, which have driven overall stock market growth in the last decade. If you expect that trend to continue, VOO is your choice.

VTV is more expensive with a Total Expense Ratio (TER) of 0.04%, versus 0.03% for VOO. VTV is up 12.84% year-to-date (YTD) with +$2.32B in YTD flows. VOO performs better with 18.7% YTD performance, and +$48.81B in YTD flows.

What if I invested $1000 in S&P 500 10 years ago? ›

That means if you held each asset for 10 years, you'd be up 126.4% with VOO or 126.9% with SPY. So imagine you put $1,000 into either fund 10 years ago. You'd be up to roughly $3,282 with VOO or $3,302 from SPY.

VOO - Performance Comparison. In the year-to-date period, QQQ achieves a 6.62% return, which is significantly lower than VOO's 12.92% return. Over the past 10 years, QQQ has outperformed VOO with an annualized return of 17.47%, while VOO has yielded a comparatively lower 12.85% annualized return.

The SPDR S&P 500 ETF Trust (SPY), also known as SPY, is an exchange-traded fund that tracks the performance of the S&P 500 index. The S&P 500 is a stock market index that measures the performance of 500 large cap publicly traded companies in the United States.

VOO is better for active traders and the VFAIX is an easier solution if you plan on placing monthly investments into the fund. In most cases, this isn't a make-or-break decision. They're similar with comparable returns, so choosing between them shouldn't make a huge difference in the long run.

While both VOO and FXAIX offer nearly identical investment outcomes by tracking the S&P 500, the decision between them hinges on individual investor priorities. FXAIX excels at cost-efficiency and tax-friendliness, while VOO provides superior trading flexibility.

Overview of the Vanguard S&P 500 ETF

Known for its superior expense ratio, the Vanguard ETF is a favorite among cost-conscious investors. The ETF aims to mirror the performance of the S&P 500 by holding a similar portfolio of stocks.