Which ETF is best to track the S&P 500?

On January 21, 2019, from John G…..

Question:

Are you suggesting to invest in all 3 ETF’s (SPY, VOO, IVV) equally or choose one? Thanks again!

Monday Morning Millionaire Program Answer:

These three ETF’s are not different in any significant way. They give investors the same low-cost exposure to the 500 largest companies in the United States. SPY fees are at 0.09% and VOO and IVV are at 0.04%. Since they are listed in the US they need to be purchased in US dollars. There are no benefits in purchasing more than one these.

VSP, XSP and ZSP are Canadian dollar versions of ETFs which track the S&P 500. There are no option contracts available for XSP and ZSP while VSP has very low option trading activity. If you are interested in writing puts and calls in your fun portfolio, SPY, VOO and IVV are a better choice.

Remember, write puts and calls in your fun portfolio only. Over the course market cycle, investors cannot lose money writing puts and calls but most would be ahead simply holding any of the above ETFs in their core portfolio.

 

 

 

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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me

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