Select ETFs: Large Cap US Equities

When it comes to investing in stocks, the S&P 500 index often takes center stage in discussions about average returns. The S&P 500, a broad and well-recognized benchmark, tracks the performance of 500 of the largest publicly-traded companies in the United States. This index has been a reliable indicator of the overall health of the US stock market, making it a go-to choice for many investors.

And what’s the most straightforward way to gain exposure to the stock market and ride the wave of average returns? Investing in an S&P 500 Exchange-Traded Fund (ETF). S&P 500 ETFs are designed to replicate the performance of the S&P 500 index. In essence, they aim to mimic the market, offering investors an efficient way to participate in the ups and downs of the US stock market. This straightforward approach means that, for the most part, there’s no expectation of earning above-average returns. Instead, S&P 500 ETFs are about tracking the market’s performance, which can be a prudent strategy for many investors.

Now, let’s dive into two S&P 500 ETFs, each with its unique appeal depending on your investment objectives.

Best for Trading

SPDR® S&P 500® ETF Trust (SPY)

Expense Ratio: 0.09%

The SPDR® S&P 500® ETF Trust, often referred to simply as SPY, is an ideal choice for investors seeking liquidity and those engaged in short-term trading strategies. It seeks to replicate the price and yield performance of the S&P 500 Index. The S&P 500 Index is a diversified large-cap US index that comprises companies from all eleven Global Industry Classification Standard (GICS) sectors.

Launched in January 1993, SPY holds the distinction of being the very first exchange-traded fund listed in the United States. Today, it is one of the largest and most heavily-traded ETFs globally. With SPY, you get exposure to one of the most recognized equity benchmarks, making it an ideal tool for active traders and those looking for quick access to the stock market’s ups and downs.

Best for Holding

BNY Mellon US Large Cap Core Equity ETF (BKLC)

Expense Ratio: 0.00%

For investors who prioritize cost-efficiency and are planning for long-term investment, the BNY Mellon US Large Cap Core Equity ETF, known as BKLC, is a compelling option. What sets BKLC apart is its impressive expense ratio – a remarkable 0.00%. This means that investors pay no management fees to invest in BKLC.

BKLC tracks the Morningstar® U.S. Large Cap IndexSM and employs a passively managed, low-cost index approach. It offers a fully transparent portfolio, providing investors with broad exposure to large-capitalization US stocks. With a cost of zero, this ETF is particularly attractive for long-term investors aiming to minimize expenses and enhance their potential for returns over time.

In conclusion, S&P 500 ETFs provide investors with a straightforward and cost-effective way to access the US stock market. Whether you’re seeking liquidity for short-term trading or prioritizing cost-efficiency for long-term investment, there’s an S&P 500 ETF to suit your investment objectives. As always, it’s crucial to align your investment choices with your financial goals and risk tolerance. Remember to conduct thorough research and consider consulting a financial advisor before making investment decisions.