Best S&P 500 ETFs for 2026
S&P 500 ETFs are the foundation of most investment portfolios, providing exposure to 500 of the largest US companies across all sectors. The S&P 500 has been the most widely followed stock market benchmark for decades, and ETFs tracking this index offer the simplest way to own a diversified slice of the American economy. With expense ratios approaching zero, S&P 500 ETFs represent the ultimate low-cost, passive investment vehicle.
SPY, the SPDR S&P 500 ETF Trust, was the first ETF ever launched in the United States and remains the most heavily traded security in the world by dollar volume. VOO from Vanguard offers virtually identical exposure at a significantly lower expense ratio, making it the preferred choice for long-term buy-and-hold investors. IVV from iShares matches VOO's low fee structure and adds the convenience of iShares' broad distribution network and ETF ecosystem.
The differences between S&P 500 ETFs are incredibly small, making this one of the easiest ETF decisions to make. All three major options track the same index with negligible tracking error. The choice typically comes down to expense ratio for long-term holders, or liquidity and options market depth for active traders. Either way, an S&P 500 ETF forms the bedrock of a sound investment portfolio and has historically delivered average annual returns of roughly 10% over long periods.
How We Rank
ETFs are ranked by assets under management (AUM). Only ETFs with $50M+ in assets are included. Data is updated daily.
| # | Symbol | Fund Name | AUM |
|---|---|---|---|
| 1 | VOO | Vanguard S&P 500 ETF | $1.50T |
| 2 | IVV | iShares Core S&P 500 ETF | $733.16B |
| 3 | SPY | State Street SPDR S&P 500 ETF Trust | $677.71B |
| 4 | SPYM | State Street SPDR Portfolio S&P 500 ETF | $106.65B |
| 5 | SPLG | SPDR Portfolio S&P 500 ETF | $95.72B |
| 6 | XLK | State Street Technology Select Sector SPDR ETF | $88.46B |
| 7 | RSP | Invesco S&P 500 Equal Weight ETF | $86.63B |
| 8 | VXF | Vanguard Extended Market ETF | $84.10B |
| 9 | IVW | iShares S&P 500 Growth ETF | $64.45B |
| 10 | IVE | iShares S&P 500 Value ETF | $48.77B |
| 11 | XLF | State Street Financial Select Sector SPDR ETF | $46.50B |
| 12 | JEPI | JPMorgan Equity Premium Income ETF | $44.02B |
| 13 | SPYG | State Street SPDR Portfolio S&P 500 Growth ETF | $43.86B |
| 14 | VNGDF | Vanguard S&P 500 UCITS ETF | $43.20B |
| 15 | XLV | State Street Health Care Select Sector SPDR ETF | $40.61B |
| 16 | XLE | State Street Energy Select Sector SPDR ETF | $38.59B |
| 17 | SPYV | State Street SPDR Portfolio S&P 500 Value ETF | $32.26B |
| 18 | XLI | State Street Industrial Select Sector SPDR ETF | $29.45B |
| 19 | XLC | State Street Communication Services Select Sector SPDR ETF | $26.29B |
| 20 | XLU | State Street Utilities Select Sector SPDR ETF | $24.46B |
| 21 | XLY | State Street Consumer Discretionary Select Sector SPDR ETF | $22.55B |
| 22 | VOOG | Vanguard S&P 500 Growth ETF | $22.50B |
| 23 | IHPCF | iShares Public Limited Company - iShares S&P 500 UCITS ETF | $17.11B |
| 24 | XLP | State Street Consumer Staples Select Sector SPDR ETF | $16.51B |
| 25 | SPHQ | Invesco S&P 500 Quality ETF | $16.16B |
What to Look For
Expense ratio and trading costs are essentially the only differentiators among S&P 500 ETFs. VOO and IVV charge around 0.03%, while SPY charges about 0.09%. For a $100,000 portfolio held for 30 years, this fee difference compounds to thousands of dollars, making VOO or IVV clearly better for long-term holders.
However, SPY's massive trading volume results in the tightest bid-ask spreads and the deepest options market of any ETF, making it the choice for active traders, options strategies, and institutional use. Also check your brokerage's commission structure, as some brokerages offer specific S&P 500 ETFs commission-free.
Which S&P 500 ETFs Is Best for You?
VOO is the best S&P 500 ETF for the majority of investors. Its 0.03% expense ratio is among the lowest in the industry, and its ETF structure allows for tax-efficient management. Vanguard's shareholder-owned structure aligns incentives with investors, and VOO's tracking error is negligible. For anyone building a long-term portfolio, VOO should be the default choice.
IVV is virtually interchangeable with VOO, offering the same 0.03% expense ratio and nearly identical performance. The choice between VOO and IVV often comes down to which brokerage you use or whether you prefer Vanguard's or BlackRock's fund ecosystem. Both are excellent and you cannot go wrong with either.
SPY is the king of liquidity. With average daily trading volume exceeding $30 billion, SPY offers the tightest spreads and most active options market of any ETF. Day traders, options strategists, and institutional investors who need to move large positions quickly choose SPY for execution quality. The higher expense ratio is a worthwhile tradeoff for active traders but not for buy-and-hold investors.