The S&P 500 Index has steadily increased since March 2023, recovering from losses late last year. It is now at its highest point since early 2022. For investors confident the market will continue its winning streak, we look at four exchange-traded funds (ETFs) that offer exposure to one of the U.S. stock market's most closely followed benchmarks.

iShares Core S&P 500 ETF (IVV), Vanguard S&P 500 ETF (VOO), and SPDR Portfolio S&P 500 (SPLG) are tailored for investors seeking the lowest expense ratios. The SPDR S&P 500 ETF (SPY) is best for investors and active traders who want the most liquidity. Because these funds all track the S&P 500, and therefore tend to provide very similar performance, expense ratios and liquidity become primary considerations for potential investors.

Below we take a closer look at four S&P 500 ETFs. We have excluded leveraged ETFs, which provide outsized returns but come with extra risk, as well as other funds providing varied exposure to the S&P 500 Index, such as the Invesco S&P 500 Equal Weight ETF (RSP), which aren't included because they don't track the S&P exactly. All data below is as of July 26.

S&P 500 ETF With the Lowest Fees: iShares Core S&P 500 ETF (IVV) (Tie)

• Expense Ratio: 0.03%
• Performance Over 1 Year: 17.1%
• Annual Dividend Yield: 1.45%
• 30-Day Average Daily Volume: 4,008,487
• Assets Under Management: $350.1 billion
• Inception Date: May 15, 2000
• Issuer: BlackRock

S&P 500 ETF With the Lowest Fees: Vanguard S&P 500 ETF (VOO) (Tie)

• Expense Ratio: 0.03%
• Performance Over 1 Year: 17.1%
• Annual Dividend Yield: 1.49%
• 3-Month Average Daily Volume: 3,741,302
• Assets Under Management: $334.7 billion
• Inception Date: Sept. 7, 2010
• Issuer: Vanguard

S&P 500 ETF With the Lowest Fees: SPDR Portfolio S&P 500 ETF (SPLG) (Tie)

• Expense Ratio: 0.03%
• Performance Over 1 Year: 17.1%
• Annual Dividend Yield: 1.47%
• 3-Month Average Daily Volume: 3,149,160
• Assets Under Management: $19.5 billion
• Inception Date: Nov. 8, 2005
• Issuer: State Street Global Advisors

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

Liquidity indicates how easy it is to buy or sell an ETF, with higher liquidity generally translating to lower trading costs. While trading costs aren't a concern for investors holding ETFs long-term, active traders favor highly liquid funds to minimize costs.

• Expense Ratio: 0.09%
• Performance Over 1 Year: 17.0%
• Annual Dividend Yield: 1.44%
• 3-Month Average Daily Volume: 78,743,056
• Assets Under Management: $427.8 billion
• Inception Date: Jan. 22, 1993
• Issuer: State Street Global Advisors
  

Why Expense Ratios Matter

A fund's expense ratio can significantly affect a long-term investor's total returns. An investor who puts $10,000 in a fund that returns 10% every year will pay $336 in fees to a fund with a 0.5% expense ratio. The same investor would pay $1,682 in fees if they put the same money in a fund with a 2.5% expense ratio.

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As of the date this article was written, the author owns SPY.