S&P 500 Investment
Everyone says invest in the S&P 500. But nobody tells you there are different ways to do it and the one you pick actually matters. Same index. Same 500 companies. Completely different costs and structures depending on where you invest. Here is the simple breakdown.
Fidelity investor - FXAIX at 0.015% mutual fund which means you can invest exact dollar amounts automatically every month. Perfect for anyone dollar cost averaging on a schedule.
Vanguard investor - VOO if you want an ETF or VFIAX if you want a mutual fund. Both are 0.03% to 0.04% and among the most trusted funds in the world. Warren Buffett's personal recommendation.
Everyone else, VOO or IVV. Both 0.03%, Both available at any brokerage. Both excellent. Flip a coin.
Active trader, SPY. The original ETF launched in 1993 with the tightest bid-ask spreads and the deepest options market anywhere. Higher cost at 0.0945% but worth it if you are trading frequently.
Do you want lower cost than SPY with the same provider, SPLG charges just 0.02% and tracks the exact same index.
Do you want to reduce mega-cap concentration risk, RSP weights every S&P 500 company equally instead of by market cap. Higher cost at 0.20% but gives you more exposure to smaller companies when mega-cap tech dominates.
The most important thing is not which one you pick. It is that you pick one and start.
