ETFs
Record after record: what are the best S&P 500 ETFs? (NYSEARCA:VOO)
honglouwawa
The S&P 500 (SP500) marked his Closing of the 30th record of 2024, closing Monday’s session at 5,473. In fact, the index is now up 15% just six months into the year, translating into an additional $5.5 billion in market capitalization. dollars. There’s a lot going on for U.S. stocks right now, with things like rising corporate profits, slowing inflation and an upcoming round of Fed easing, along with historically low market volatility, a likely soft landing and, of course, the notable AI rebound.
Caught off guard: Analysts continue to raise targets as bullish energy takes over the Street. Evercore ISI comes out with a new 6,000 calls on the S&P 500 (SP500), against 4,750, while Goldman Sachs and Citi pushed back their year-end targets at 5,600, compared to 5,200 and 5,100 previously. Others, like the Seeking Alpha analyst Search Cavenaghare continuous bulls since the beginning of the year, providing bi-monthly forecasts of Purchase recommendations, new phases of bull market And rallies to new all-time highs.
It is clear that the money is being set aside, but will it last? Those who worry about concentration risk point to the above-average share of mega-caps and, if things go wrong in the sector, it could weigh on the entire market. This is a legitimate concern since the Magnificent 7s account for two-thirds of this year’s gains in the S&P 500 (SP500), but others point to the reasons for the success of this business (i.e. AI) and being greedy when others are afraid. Even though these stocks are stretched, there may be plenty of room to run for many other S&P 500 companies (SP500), which have not seen significant appreciation this year and could also support the recovery.
How to invest: Although most S&P 500 ETFs have similar holdings, they differ slightly in terms of expense ratios, trading spreads, dividend yields and assets under management. Two of the most popular offerings include the low-cost Vanguard S&P 500 ETF (NYSEARCA:VOO), as well as the SPDR S&P 500 ETF Trust (NYSEARCA:TO SPY), which is known for its liquidity and might be easier for intraday trading and options. The iShares Core S&P 500 ETF (NYSEARCA:IVV) also has lower fees, but its volumes are significantly lower. All of these ETFs are valued at $500 per share, based on total assets and units outstanding, but if you’re looking for something cheaper, the SPDR Portfolio S&P 500 ETF (NYSEARCA:SPLG) is a convenient option, especially for those who don’t want to get into fractional shares or have a smaller portfolio.