The best S&P 500 ETF to invest $1,000 in right now

Putting $1,000 into any investment is a significant commitment, with the obvious goal of maximizing your returns and minimizing your losses. A wonderful way to do this is by Exchange-traded funds (ETF), which allows you to buy stocks like you own and can be bought for a small amount of money.

If you have $1,000 to invest now, there are some very good reasons to put that money into an ETF. S&P 500. Here’s why and which S&P 500 ETF is one to own.

Billionaire investor and CEO Berkshire Hathaway Warren Buffett has just two S&P 500 ETFs in his company’s $325 billion investment portfolio, the largest of which is Vanguard S&P 500 ETF (NYSEMKT: Flight). Buffett’s firm currently owns 43,000 shares of the Vanguard S&P 500 ETF, which is a small position compared to his other holdings, but clearly has made a fund that tracks the S&P 500.

“In my view, the best thing for most people is to own an S&P 500 index fund,” Buffett said at the 2020 Berkshire Hathaway Annual Meeting.

Buffett said at Berkshire’s 2013 annual meeting that almost all of the investment assets he will leave to his wife will be in index funds when they die. He said: “My advice to a manager couldn’t be simpler: Put 90% of your money in a very low S&P 500 index fund. (I recommend Vanguard.)”

Index funds have become a popular investment vehicle because they are hard to beat. The Vanguard S&P 500 ETF is passively managed, which means that money invested in the fund is used to buy stocks of companies in the S&P 500 index without trying to focus on picking specific winners.

Not only is it easier than trying to figure out which stock will beat the market, this strategy usually yields better returns. Research from morning star Only 29 percent of actively managed funds beat their passive index peers over the past decade.

You might think that if a fund is “secretly managed” you won’t be able to make significant gains, but that’s not true. The Vanguard S&P 500 ETF has returned a total of 257% over the past decade.

Another great advantage of this particular ETF is that it is very low Amount of expenditure Fees Only 0.03% This means if you invest $1,000, you will only pay $0.30 in fees, and $10,000 invested in the fund will cost you only $3.

The S&P 500 has had a historical average annual rate of return of 10.1% since 1957. Of course, some years are more and less. Also, those returns don’t take into account inflation.

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