If you’re not sure where to invest your money these days, a good option is to simply have exposure to the S&P 500. The broad-based index includes the top stocks in the world. And over the long term, it’s a safe bet to rise in value. While it may have a bad year once in while, if you’re investing for the long term, you will likely be in a much stronger position in the future by focusing on the index.
There are many exchange-traded funds (ETFs) which can give you exposure to the S&P 500. But when choosing an ETF, it’s important not to overlook fees, which can erode your gains and diminish your total returns. One fund with incredibly low fees is the iShares Core S&P 500 ETF (NYSE Arca: IVV). It has an expense ratio of just 0.03%, giving you a fairly cheap way to track the S&P 500.
And over the years, it has done an excellent job of doing just that. In five years, the total returns of the ETF, which include dividends, are around 97.1%, which is comparable to the index’s actual 97.4% returns.
For investors, putting your money into this ETF can be an excellent way to build long-term wealth. It minimizes your risk since you have exposure to hundreds of stocks. And when the markets are doing well, so is your investment in the fund. This can be a safe ETF to put money into on a recurring basis whenever you can afford to do so.
