The Best S&P 500 ETF to Invest $5,000 in as 2026 Begins

Core Insights - The S&P 500 index has experienced three consecutive years of gains of 16% or more, a rare occurrence in the last 98 years [1] - Investors have multiple S&P 500 ETFs to consider for investment, with the SPDR S&P 500 ETF Trust being the most popular based on trading volume [2] - The Vanguard S&P 500 ETF holds the largest assets under management (AUM) at over $840 billion [3] ETF Comparisons - The iShares Core S&P 500 ETF, managed by BlackRock, has AUM greater than the SPDR S&P 500 Trust and competes closely with Vanguard in trading volume [4] - The State Street SPDR Portfolio S&P 500 ETF is a smaller option compared to the SPDR S&P 500 ETF Trust [4] - The Invesco S&P 500 Equal Weight ETF offers an equal-weighted approach to the same stocks in the S&P 500 [5] Performance and Expense Ratios - The five S&P 500 ETFs differ mainly in annual expense ratios and liquidity, with the following expense ratios noted: - SPDR S&P 500 ETF Trust: 0.0945% - Vanguard S&P 500 ETF: 0.03% - iShares Core S&P 500 ETF: 0.03% - State Street SPDR Portfolio S&P 500 ETF: 0.02% - Invesco S&P 500 Equal Weight ETF: 0.20% [6][7] - Market-cap-weighted funds have shown similar returns over the last decade, while the equal-weighted ETF has underperformed due to the strong performance of large growth stocks [7] Recommendations - The State Street SPDR Portfolio S&P 500 ETF is recommended due to its lowest expense ratio, which can lead to significant financial advantages over time [9] - The Invesco S&P 500 Equal Weight ETF may outperform if the demand for AI-related stocks declines, as it has less exposure to large-cap stocks [9]