If you're looking to invest in the S&P 500 index but want to keep costs low, you might be wondering, "What is the cheapest S&P 500 index fund?" Index funds are a popular choice for investors seeking broad
market exposure at a low cost. The S&P 500, which tracks the performance of the 500 largest publicly traded companies in the US, is a widely-followed benchmark for the overall stock market.
When it comes to finding the cheapest S&P 500 index fund, there are several factors to consider. One key factor is the expense ratio, which is the annual fee charged by the fund for managing and operating the fund. Lower expense ratios mean more of your money stays invested and can potentially grow over time.
Another factor to consider is the fund's tracking error, which measures how closely the fund's performance matches the performance of the S&P 500 index. A low tracking error indicates that the fund is effectively tracking the index and delivering the desired exposure.
So, what is the cheapest S&P 500 index fund? It depends on several factors, including the fund's expense ratio, tracking error, and investment objectives. It's important to research different options and compare them side-by-side to find the fund that best meets your needs and goals. With the right research and due diligence, you can find a low-cost S&P 500 index fund that helps you build a solid foundation for your investment portfolio.
6 answers
MountFujiMystic
Tue Aug 27 2024
Offering a yield of 1.33%, the FXAIX provides a steady source of income for investors, complementing its capital appreciation potential. This feature makes it an attractive option for those seeking both growth and income.
CoinMaster
Tue Aug 27 2024
The Fidelity 500 Index Fund (FXAIX) stands as a prominent choice for investors seeking exposure to the S&P 500 Index at minimal costs. With an expense ratio of just 0.015%, it offers one of the lowest-cost options in the market.
Federica
Tue Aug 27 2024
Despite the challenging market conditions in 2022, the fund recorded a return of -18.13%, reflecting the broader market trends. However, its long-term performance remains compelling for investors looking to build wealth over time.
SapphireRider
Mon Aug 26 2024
With Assets Under Management (AUM) of $373.8 billion, the fund boasts significant scale and liquidity, ensuring investors can easily buy and sell shares without incurring significant transaction costs.
GangnamGlitzGlamourGlory
Mon Aug 26 2024
One of the key advantages of the FXAIX is its accessibility, with a minimum investment requirement of $0. This feature makes it suitable for investors of all sizes, from individual retail investors to large institutional players.