S&P 500 Performance and Investment Options
The S&P 500 index has achieved three consecutive years of gains of 16% or more, a streak seen only five times in the last 98 years. As of early 2026, the index is continuing to perform well, prompting investors to consider the best S&P 500 ETFs for a $5,000 investment.
The top contenders include the SPDR S&P 500 ETF Trust (SPY) with an annual expense ratio of 0.0945% and an average trading volume of 80 million shares. The Vanguard S&P 500 ETF (VOO) and iShares Core S&P 500 ETF (IVV) both have a lower expense ratio of 0.03%, while the State Street SPDR Portfolio S&P 500 ETF (SPYM) boasts the lowest at 0.02%. Notably, the Vanguard ETF leads with over $840 billion in assets under management, while the Invesco S&P 500 Equal Weight ETF (RSP) employs a unique strategy by equally weighting its holdings.
Investors should consider factors such as expense ratios and liquidity, as they can significantly affect returns over time. The 10-year performance of the equal-weighted ETF has lagged behind market-cap-weighted counterparts, primarily due to high returns from major tech stocks. However, a potential shift in market dynamics could favor the equal-weight strategy if demand for big tech declines.
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