Top S&P 500 ETFs in 2025: Fees, Liquidity & Performance Analysis

The iShares Core S&P 500 ETF (IVV), Vanguard S&P 500 ETF (VOO), and SPDR Portfolio S&P 500 ETF (SPLG) all offer some of the lowest expense ratios in the market, while the SPDR S&P 500 ETF (SPY) leads in liquidity.

After the S&P 500 Index rebounded over 20% from its October 2022 lows, entering a bull market on June 8, 2024, investors looking to capitalize on this momentum can consider these four ETFs. They provide broad exposure to one of the most widely tracked U.S. stock market benchmarks.

For cost-conscious investors, IVV, VOO, and SPLG stand out with minimal fees, making them ideal for long-term holders. Conversely, SPY is favored by active traders due to its exceptional liquidity, facilitating easy buying and selling with minimal trading costs.

Key Highlights

• The S&P 500 entered bull market territory in early June 2024 after a significant correction since December 2021.
• IVV, VOO, SPLG, and SPY provide diversified exposure to the S&P 500 index.
• Choosing the right ETF involves balancing expense ratios against liquidity based on your investment style.
• Apple Inc. (AAPL) remains the largest holding in all these ETFs, reflecting its dominant market cap.

Encouraged by declining inflation rates and the Federal Reserve's June 2024 pause on interest rate hikes, the S&P 500's 12-month trailing price-earnings ratio has dropped by 11%, making many stocks more attractively priced.

Below is a detailed overview of these top S&P 500 ETFs, excluding leveraged options due to their higher risk profile. All data is current as of June 14, 2024.

Lowest Fee S&P 500 ETFs (Tie): iShares Core S&P 500 ETF (IVV)

• Expense Ratio: 0.03%
• One-Year Performance: 15.4%
• Annual Dividend Yield: 1.56%
• 30-Day Average Daily Volume: 3,668,396 shares
• Assets Under Management: $326.1 billion
• Inception Date: May 15, 2000
• Issuer: BlackRock Financial Management

Lowest Fee S&P 500 ETFs (Tie): Vanguard S&P 500 ETF (VOO)

• Expense Ratio: 0.03%
• One-Year Performance: 15.3%
• Annual Dividend Yield: 1.57%
• 30-Day Average Daily Volume: 3,590,357 shares
• Assets Under Management: $312.6 billion
• Inception Date: September 7, 2010
• Issuer: Vanguard

Lowest Fee S&P 500 ETFs (Tie): SPDR Portfolio S&P 500 ETF (SPLG)

• Expense Ratio: 0.03%
• One-Year Performance: 15.3%
• Annual Dividend Yield: 1.59%
• 30-Day Average Daily Volume: 3,191,321 shares
• Assets Under Management: $18.3 billion
• Inception Date: November 8, 2005
• Issuer: State Street Global Advisors

Most Liquid S&P 500 ETF: SPDR S&P 500 ETF (SPY)

Liquidity is crucial for investors and traders who prioritize ease of transaction and minimizing trading costs. SPY boasts the highest liquidity among S&P 500 ETFs, making it the preferred choice for active market participants.

• Expense Ratio: 0.0945%
• One-Year Performance: 15.3%
• Annual Dividend Yield: 1.60%
• 30-Day Average Daily Volume: 80,884,133 shares
• Assets Under Management: $413 billion
• Inception Date: January 22, 1993
• Issuer: State Street Global Advisors

Understanding the Importance of Expense Ratios

Since these ETFs aim to replicate the S&P 500 index, the expense ratio significantly influences long-term returns. The expense ratio represents the annual fee as a percentage of assets charged by the fund manager to cover operational costs.

For example, an investor contributing $10,000 to a fund with a 0.5% expense ratio earning 10% annually would pay approximately $336 in fees over time. In contrast, the same investment in a fund charging 2.5% would incur fees around $1,682, substantially reducing net returns.

Note: The information provided here is for educational purposes only and should not be considered financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.

As of this article's publication, the author does not hold positions in any of the ETFs mentioned.

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