In the realm of global investment, S&P 500 ETFs are highly favored for their broad exposure to the US large-cap stock market. For investors in Singapore, selecting the appropriate ETF product is key to achieving asset diversification and long-term growth.

What is the best S&P 500 ETF?
Given the popularity of the S&P 500 index, there are many ETFs tracking it. Here's a comparison of four of the most popular ones: VOO, SPY, IVV, and SPLG.

●VOO: Vanguard S&P 500 ETF
VOO is provided by Vanguard, the world's largest index fund provider, and is known for its low expense ratio (0.03%). While VOO may have slightly lower liquidity compared to SPY, this difference is not significant for most investors. Founded by "the father of index investing" Jack Bogle, VOO boasts extremely low fund expenses, making it a cost-effective choice.

●SPY: SPDR S&P 500 ETF Trust
SPY is one of the oldest and most well-known S&P 500 ETFs, offered by State Street Global Advisors. Due to its high profile, SPY has a much higher trading frequency than VOO and IVV, providing greater liquidity. With its long history and high liquidity, SPY is a highly recognizable and frequently traded ETF.

●IVV: iShares Core S&P 500 ETF
IVV, provided by BlackRock, has an expense ratio of 0.03%, identical to VOO, making it one of the more cost-effective choices. Since its inception in 2000, IVV has become one of the largest ETFs globally, boasting a massive asset base and cost efficiency.

●SPLG: SPDR Portfolio S&P 500 ETF
SPLG, also provided by State Street Global Advisors, has the lowest expense ratio among the four at 0.02%. Its introduction can be seen as a supplement to the high fees of SPY. With its lower expense ratio, SPLG offers a cost-effective alternative.

Investors in Singapore can consider any of these four S&P 500 ETFs to gain exposure to the US large-cap stock market, taking into account factors such as expense ratios, liquidity, and asset size to determine the best fit for their investment objectives.

SOURCE:ETF.com

Comparison of Returns
VOO, SPY, IVV, and SPLG are four ETFs that track the S&P 500 index. Based on historical data, the long-term returns of VOO, SPY, IVV, and SPLG are very close, with almost identical 3-year, 5-year, and 10-year annualized total return rates. Additionally, all of these ETFs distribute dividends from their underlying companies on a quarterly basis.

SOURCE:ETF.com

However, despite their similar returns, there are some subtle differences among them, mainly stemming from their fee structures and dividend policies:

●Fee Differences: The expense ratio of different ETFs affects long-term investment returns. VOO and IVV have lower expense ratios, both at 0.03%, while SPY has an expense ratio of 0.09%, and SPLG has the lowest expense ratio at 0.02%. Over the long term, lower expense ratios can accumulate into significant return differentials.

●Liquidity Differences: A notable feature of ETFs is their high liquidity, allowing investors to quickly and efficiently convert their fund shares into cash. SPY, due to its high liquidity, may provide tighter tracking performance under certain market conditions. Although SPY's high liquidity is particularly prominent, in reality, the trading ranges of these four ETFs are very broad, fully meeting the needs of ordinary investors.

●Asset Size: While asset size does not directly affect return rates, it can influence the stability and trading costs of ETFs. SPY, as the largest ETF in the United States, may benefit from its massive asset size in providing more stable market performance.

Analyzing the commonalities and disparities among VOO, SPY, IVV, and SPLG:
VOO, SPY, IVV, and SPLG are four ETFs that all track the S&P 500 index, offering investors a low-cost and convenient way to gain broad exposure to the US large-cap stock market. They also follow the same dividend policy, distributing dividends from underlying companies on a quarterly basis. These common characteristics make these ETFs popular choices for investing in the US stock market. However, there are differences among them:

How to place a trade on uSMART mobile application：
After logging into the uSMART SG APP, click on "Search" from the top right corner of the page. Enter the stock code you want to invest ，such as "SPY" ，to access the details page for trading information and historical trends. Click on "Trade" at the bottom right corner and select the "Buy/Sell" function. Finally, fill in the trading conditions and submit the order. Please see the image guide below for step-by-step instructions:

This diagram is provided for illustrative purposes exclusively

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