The Best S&P 500 ETF to Invest $500 in Right Now

When it comes to the banal market, 1 wide benchmark gets astir of the attention. That makes sense, fixed that it represents astir 80% of the full worth of U.S. equities.

I'm talking astir the S&P 500 index. It has historically been a superb instrumentality to physique wealth. And investors tin summation vulnerability done exchange-traded funds (ETF).

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

Here's the champion 1 to bargain with $500 close now.

As the sanction suggests, the S&P 500 contains 500 oregon truthful ample and profitable companies that commercialized connected U.S. banal exchanges. Buying the Vanguard S&P 500 ETF (NYSEMKT: VOO), which presently has $1.5 trillion successful assets nether management, is simply a astute mode to get access. Investors are fundamentally putting their wealth down the content that the American system volition proceed increasing successful the future.

All sectors are represented. At 1 extremity of the spectrum, determination are materials and existent estate, which relationship for a tiny stock of the portfolio.

On the different side, there's the accusation exertion sector. Companies that run successful related industries person mostly registered beardown maturation successful the past decade. Technology is intelligibly a important contributor to the U.S. system these days.

It should travel arsenic nary astonishment that the "Magnificent Seven" stocks marque up 35% of the Vanguard S&P 500 ETF combined. There mightiness beryllium hundreds of businesses successful this concern vehicle, but determination is dense attraction astatine the top. That setup isn't needfully a atrocious thing. It's conscionable captious that investors instrumentality the clip to recognize what they own. You should beryllium bullish connected tech-driven trends, specified arsenic artificial intelligence, if you bargain this ETF.

Owning the Vanguard S&P 500 ETF is simply a hassle-free approach. What's more, the debased disbursal ratio of 0.03% makes for an highly compelling proposition. Investors volition support much of their wealth implicit time.

Performance is different country of focus. In the past decade, this ETF has generated a full instrumentality of 343% (as of Feb. 9). This summation would've turned a starting $10,000 into much than $44,000 today. This is overmuch amended than the S&P 500's semipermanent humanities mean of 10%.

It's intolerable to foretell what the aboriginal volition bring. The bears volition constituent to the banal market's costly valuation arsenic a awesome that returns going guardant won't lucifer the caller past.