An index fund is a passively-managed fund that tracks a particular index, such as the Standard and Poor's 500 (S&P 500), which means they seek to track the performance of the underlying index rather than trying to outperform it.
Investing in the S&P 500 is made easy with IVV, which has an expense ratio of just 0.03%, making it a low-cost option. The annual costs come to about $3 for a $10,000 investment, which is cost-effective compared to actively managed funds, which can charge up to 1%.
2. iShares Core S&P Total US Stock Market ETF (ITOT)
More than 3,000 mid-and small-cap stocks outside the S&P 500 are worth investing in. Although these equities are more volatile, they might offer marginally better long-term returns.
SPY is one of the biggest and most well-known S&P 500 funds. With over $370 billion assets under management and an average daily trading volume of over 50 million shares.
QQQM is a market capitalization index with 101 of the largest non-financial sector stocks trading on the Nasdaq Stock Exchange. The Nasdaq 100 is more volatile than the S&P 500, meaning that it has higher risk and the potential for higher returns.