Best S&P 500 ETFs for April 2025

They're a popular choice for Singaporean investors seeking diversification, as they're easily accessible through local brokerages. This guide will compare some of the top S&P 500 ETFs, helping you decide which S&P 500 ETF to buy.

It's important to note that not all ETFs with "S&P 500" in their name track the full index. Some focus on subsets, like growth or value stocks. 

For Singaporean investors looking for broad market exposure, it's key to identify ETFs that truly replicate the entire S&P 500. Fortunately, only a select few ETFs do this, simplifying the decision of how to invest in the S&P 500.

Before investing in an S&P 500 ETF, ensure you have a brokerage account set up.

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Choosing and buying the right S&P 500 ETF involves considering a few key factors.

Here's what to keep in mind:

• Expense ratio: Look for the ETF with the lowest management fee, as even small differences can accumulate over time. For example, a 0.03% expense ratio will be cheaper than a 0.09% ratio in the long run.

• Trading costs: While many brokers in Singapore offer commission-free trading, confirm the availability of your chosen ETF in the commission-free list, as it can vary.

• Price: ETF share prices vary slightly, which might affect how many shares you can initially purchase, but it shouldn't be the primary factor.

• Yield and return: Although these ETFs track the same index, their yield and return may differ slightly. Focus on longer performance (at least five years) rather than short-term fluctuations to assess overall value.

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Investors generally don't need to hold multiple S&P 500 ETFs. Since each ETF tracks the same index, they provide similar market exposure. Holding multiple versions won't necessarily enhance returns and could complicate portfolio management.

Singaporean investors should focus on choosing one suitable ETF and consider potential cost savings from consolidating their holdings.

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To buy these ETFs in Singapore, you can use local brokers like Interactive Brokers or Tiger Brokers. Before purchasing, consider factors like brokerage fees, any tax implications, and how the ETF fits into your overall portfolio strategy. 

For diversification, explore related investment options such as NASDAQ ETFs or ETFs tracking global markets.

The authors and editors held no financial stake in the investments mentioned at the time of writing.