Best S&P 500 ETFs November 2024

We created our ranking of the best S&P 500 ETFs by applying a screen of several must-have metrics:

• Tracking error. We assessed how much an ETF’s 10-year annualized performance differed from the S&P 500 index’s 10-year annualized return of 13.15% as of Sept. 30, 2024.
• AUM. All the ETFs on this list have accrued at least $1 billion in assets under management. ETFs with a higher AUM tend to have higher trading volume, tighter bid-ask spreads and more popularity.
• Expense ratio. We capped the acceptable expense ratio at 0.2%. The expense ratio is deducted directly from the gross returns of the ETF. Keeping it as low as possible can help an S&P 500 ETF track its benchmark index more closely.
• Management style. All the ETFs on this list replicate the exact holdings of the S&P 500 index and its returns in a passively managed structure. Actively managed ETFs that use the S&P 500 index as an underlying asset were excluded.

This set of criteria allows you to screen for S&P 500 ETFs that are passively managed, have a low cost, incur minimal tracking error and have an established market presence backed by a competent fund manager.

An experienced fund analyst selected the funds above, but they may not be right for your portfolio. Before purchasing any of these funds, do plenty of research to ensure they align with your financial goals and risk tolerance.

Why other S&P 500 ETFs didn’t make the cut

We focused on passively managed S&P 500 ETFs for our ranking. Passively managed S&P 500 ETFs replicate the benchmark index holdings and track its returns as closely as possible.

We excluded actively managed ETFs and factor-based ETFs. These include ETFs that target leveraged, inverse or enhanced income exposure for the S&P 500 index. These also include ETFs that attempt to isolate a particular style of stock, such as value, growth, low volatility or dividend aristocrat, from the S&P 500.

We made this decision after reviewing the latest SPIVA Scorecard from the S&P Dow Jones Indices. The SPIVA scorecard measures the performance of actively managed funds worldwide against their index benchmarks. Roughly 88% of U.S. large-cap funds underperformed the S&P 500 over the last 15 years, as of Dec. 31, 2023.

Actively managed and factor S&P 500 ETFs might have uses if you want to try to outperform the market and generate higher yields or hedge against crashes. But passively managed S&P 500 ETFs provide the best blend of low fees, high diversification, simplicity and transparency. You can capture as much of the S&P 500 index’s returns as possible net of fee with these ETFs.