Even the most sophisticated investors often prefer easier ways to make money, and a prime example of this is their use of exchange-traded funds (ETFs) like the Vanguard S&P 500 ETF.

Warren Buffett and Ken Griffin are two of the most successful investors in the world. Both chose to simply invest in the Vanguard S&P 500 ETF (VOO.US).

Why are the S&P 500 ETFs so popular？

The S&P 500 ETF tracks the S&P 500 Index, which is considered a bellwether for the U.S. economy. The index holds the 500 largest U.S. stocks and covers all sectors including technology, energy, financials and healthcare.

When you invest in the S&P 500 ETF, you automatically own Apple (AAPL.US), Tesla (TSLA.US), Disney (DIS.US) and Warren Buffett’s Berkshire Hathaway (BRK.A.US) ) · Top stocks such as Hathaway Inc.

What are the best S&P 500 ETFs?

Given the popularity of the S&P 500, there are many ETFs tracking it. Here's a comparison of three of the most popular ETFs: SPY, IVV, and VOO.

SPY (SPDR S&P 500 ETF Trust) is the world's first listed ETF. It was launched by State Street Global Advisors in 1993. It directly tracks the S&P 500 Index and covers 500 large companies in the United States. As one of the most popular ETFs in the world, SPY has extremely high market liquidity and a large scale of assets under management, making it the first choice for institutional investors and short-term traders. SPY's expense ratio of 0.09% is relatively high among similar ETFs, however, its high liquidity often makes up for this shortcoming, especially for investors who trade frequently.

VOO (Vanguard S&P 500 ETF) was launched by Vanguard in 2010 and is a low-cost ETF tracking the S&P 500 Index. VOO's expense ratio is just 0.03%, making it an ideal choice for long-term investors, especially those who are fee-sensitive. Although its liquidity is slightly less than that of SPY, VOO still has extremely high trading volume and market recognition. Vanguard's reputation and its low-cost investment philosophy have made VOO widely popular in the market, especially among investors looking for long-term and stable growth.

IVV (iShares Core S&P 500 ETF) was launched in 2000 by iShares, a subsidiary of BlackRock, and also tracks the S&P 500 Index. IVV's expense ratio is the same as VOO, only 0.03%, but its asset management scale is slightly higher than VOO, and its liquidity performance is also quite good. IVV's historical performance is almost the same as that of its competitors, but as one of the world's largest asset management companies, BlackRock's brand influence and stable management capabilities add extra appeal to IVV. IVV is particularly suitable for investors who hope to obtain market average returns through long-term holding.

(Source：uSMART，Data as of August 23, 2024)

●Because of its long history, SPY has the most expensive handling fees, while VOO and IVV handling fees are extremely low.

●SPY has the largest daily average trading volume, with an average daily trading volume of about 78 million shares in three months; VOO has 4.7 million shares; IVV has 5.3 million shares. All three have good liquidity.

●SPY has the largest tracking error, while IVV and VOO have extremely low tracking errors, but they are closer this year.

●SPY has the largest dividend distribution, but the gap with VOO and IVV is very small. In the past four times, SPY has distributed dividends of approximately US$6, VOO has allocated US$5.7, and IVV has allocated US$5.9.

What constituent stocks do SPY, IVV and VOO contain?

SPY, IVV, and VOO are three ETFs that track the S&P 500, so their constituents are nearly identical. Here are the common constituents of these three ETFs, which are companies in the S&P 500:Apple Inc. - AAPL.USMicrosoft Corporation - MSFT.USAmazon.com, Inc. - AMZN.USAlphabet Inc. - GOOGL and GOOG.USFacebook (Meta Platforms, Inc.) - META.USTesla, Inc. - TSLA.USBerkshire Hathaway Inc. - BRK.B.USNVIDIA Corporation - NVDA.USJPMorgan Chase & Co. - JPM.USJohnson & Johnson - JNJ.US

SPY, IVV,VOO: Which one should investors choose?

For most investors, the differences between these three ETFs are minimal. They all track the same index, hold similar stocks, and have essentially similar returns.

The main difference between SPY, VOO and IVV is their cost.

SPLG has the lowest cost at 0.02%, followed by VOO and IVV at 0.03%, and SPY at 0.09%. If you're a cost-conscious investor, VOO, IVV, and SPLG may be more attractive options compared to SPY due to their lower expense ratios. Conversely, if you are an active or institutional trader, you may appreciate SPY's higher liquidity.

In the end, VOO, SPY, IVV and SPLG are all good choices. As the saying goes, the best time to invest was yesterday. It's more important to start investing rather than spending too much time choosing between four funds.

How to invest in SPY, IVV and VOO on uSMART?

After logging into uSMART HK APP, click "Search" from the upper right corner of the page, enter "SPY" or "IVV" or "VOO" to enter the details page to learn about transaction details and historical trends. Click "Transaction" in the lower right corner and select " "Buy/Sell" function, finally fill in the transaction conditions and then send the order; the picture operation instructions are as follows:

This image is for illustrative purposes only