S&P 500 ETFs Compared: Which Fund Is the Right Pick for You in 2025?
S&P 500 ETFs Compared: Which Fund Is the Right Pick for You in 2025?
Table of Contents
- 1. How I Began with Index Funds
- 2. What Is the S&P 500 Index?
- 3. Comparing Popular S&P 500 ETFs
- 4. Overview of Each ETF
- 5. Which ETF Should You Choose?
- 6. Final Thoughts
1. How I Began with Index Funds
I first started investing in U.S. stocks by buying familiar companies like Apple and NVIDIA. But I often sold too quickly and missed out on long-term gains. That experience taught me the value of a more patient, hands-off strategy.
👉 Curious how I got started? Read my full story here.
In this post, I’ll break down four popular ETFs that track the S&P 500—helping you decide which one best fits your investment style.
2. What Is the S&P 500 Index?
The S&P 500 tracks 500 major U.S. companies, weighted by market value. It's widely used as a benchmark and naturally provides diversification across sectors.
Though the market has its ups and downs, the S&P 500 has steadily climbed over the years.
👉 This long-term trend is why many investors turn to ETFs that follow the S&P 500.
3. Comparing Popular S&P 500 ETFs
Here’s a quick comparison of four major ETFs that follow the S&P 500 (based on data from May 15, 2025):
| ETF | Inception Date | Expense Ratio | NAV (Net Asset Value) | 30-Day Avg. Volume | Closing Price (May 15, 2025) |
|---|---|---|---|---|---|
| VOO | 2010-09-07 | 0.03% | $542.76 | 7.36M | $542.76 |
| IVV | 2000-05-15 | 0.03% | $593.18 | 3.08M | $593.18 |
| SPY | 1993-01-22 | 0.09% | $590.46 | 71.27M | $590.46 |
| SPLG | 2005-11-22 | 0.02% | $69.45 | 5.24M | $69.45 |
NAV (Net Asset Value) refers to the total value of the ETF's assets minus liabilities, divided by the number of shares.
4. Overview of Each ETF
VOO (Vanguard S&P 500 ETF)
- Low expense ratio (0.03%)
- Trusted provider: Vanguard
- Ideal for long-term investors
IVV (iShares Core S&P 500 ETF)
- Same cost as VOO
- Slightly more trading volume
- Balanced choice for all types of investors
SPY (SPDR S&P 500 ETF)
- First ETF ever launched (1993)
- Extremely high liquidity
- Best suited for active traders
SPLG (SPDR Portfolio S&P 500 ETF)
- Lowest expense ratio (0.02%)
- Low price per share, easy for beginners
- I personally invest in SPLG for its simplicity and cost-effectiveness
5. Which ETF Should You Choose?
Here’s how you might decide:
- New or small investors: SPLG for low entry cost
- Buy-and-hold investors: VOO or IVV for reliability
- Frequent traders: SPY for maximum liquidity
That said, if you're looking to start simple and cost-efficient, SPLG is a great option.
6. Final Thoughts
ETFs might look complex, but they’re beginner-friendly and powerful. If you're thinking long-term, there's no better time to begin.
Stick to your plan. Focus on growth. We’ll continue exploring more ETFs in the next post.
Let’s build smart investing habits—one ETF at a time.
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