Almost every month is a good time to invest in a 500 index fund.
Doing so is like betting on the future success of the U.S. economy.
Many index funds also have super low fees; here are some to consider.
10 Better Stocks from Ours 10 ETFs ›
So, you want to invest S&P 500an index of 500 of the largest and best companies in the United States. That’s awesome! After all, while there are thousands of publicly traded companies in the United States for investors to choose from, S&P’s 500-year-old companies account for about 80% of the value of the entire U.S. stock market.
Investing in the S&P 500 essentially shows that despite occasional retreats, the U.S. economy will continue to grow over time. It’s a simple, fast and smart way to invest in the U.S. stock market without requiring you to be an investment expert of any kind.
Image source: Getty Images.
And, you don’t need to jump in July – any month will do, especially if you plan to add money to your portfolio regularly over time.
The smartest way to invest in the S&P 500 in July (or any month) is to buy a low-income S&P 500 fund. Such funds will usually be designed to hold the same stock as the index proportional to their market capitalization, thus providing the same return as the index – minus their administrative expenses, which can be tiny with the best index funds. Here are three reliable options:
Invest in gold
Powered by Money.com – Yahoo may receive commissions from the link above.
Vanguard S&P 500 ETF(nysemkt: voo)
ishares core S&P 500 ETF(nysemkt:ivv)
SPDR S&P 500 ETF(Nysemkt: spy)
The Vanguard S&P 500 ETF is a classic, simple S&P 500 index fund. Like any other such fund, it spreads your dollar in stocks in hundreds of companies, including the “huge seven” stocks apple,,,,, Amazon.com(Google Parents) letter(Facebook parents) Meta Platform,,,,, Microsoft,,,,, Nvidiaand Tesla. Its expense ratio (annual fee) is 0.03%, which means you only have to pay $10,000 a year to invest in the fund.
The Ishares Core S&P 500 ETF has an ultra-low fee ratio of 0.03%, while the SPDR S&P 500 ETF has a fee ratio of 0.0945%. (Nevertheless, a $10,000 investment is less than $10 a year.) All of these funds have almost 500 companies.
Investing in the basic S&P 500 index fund basically ensures that your returns will match the returns in the market. But this doesn’t have any chance to beat the market.
If you want to shoot faster while still focusing on the U.S. economy, consider Vanguard S&P 500 Growth ETF(nysemkt: voog). It’s to match the S&P 500 Grow The index includes only those components of the benchmark index considered as “growth stocks,” which is determined by the S&P based on “the ratio and momentum of sales growth, earnings change to price.”
It has recently held 212 different stocks. However, it is worth noting that about half of its value comes from its top ten, and 12.5% of its assets are in Nvidia (currently the most valuable company in the world). So if you are investing in this fund, you need to be satisfied with this concentration. (The regular S&P 500 fund is also concentrated, but less – one-third of today’s S&P 500 comes from its top 10.)
Also note that the movement to grow ETFs is more volatile than the Standard S&P 500 Index Fund. For example, in the 2022 market investment, the S&P 500 index fell 18.2%, while the Vanguard S&P 500 ETF ETF fell 29.5%.
etf
Cost ratio
5-year average annual return form
10-year average annualized income
Vanguard S&P 500 ETF (voo)
0.03%
16.46%
13.52%
ishares core S&P 500 ETF (IVV)
0.03%
16.47%
13.51%
SPDR S&P 500 ETF (spy)
0.0945%
16.40%
13.46%
Vanguard S&P 500 Growth ETF (VOOG)
0.07%
16.72%
15.60%
Source: Morningstar.com, as of July 1, 2025.
The table above shows how these funds are compared. It also shows that sticking to the standard low-cost S&P 500 index fund, you probably won’t do anything worse. It is difficult to beat the stock market when it comes to building long-term wealth.
Before buying stocks with a Vanguard S&P 500 ETF, consider the following:
this Motley Fool Stock Advisor The analyst team just confirmed what they think is 10 Best Stocks Investors buy now…and the Vanguard S&P 500 ETF is not one of them. Ten stocks with layoffs could generate monster returns in the coming years.
When to considerNetflixOn this list on December 17, 2004…If you invested $1,000 when you suggested,You will have $699,558! * Or when NvidiaThis list was listed on April 15, 2005…If you invested $1,000 when you suggested,You will have $976,677! *
Now, it’s worth notingStock ConsultantThe overall average return is1,060% – Compared to market impulses180%For the S&P 500 index. Don’t miss the latest top ten list, available when you joinStock Consultant.
View 10 stocks »
*Stock Advisor Returns as of June 30, 2025
Alphabet executive Suzanne Frey is a member of the board of directors of Motley Fool. Randi Zuckerberg is a sister of former marketing development director, Facebook spokesperson, and Meta Platform CEO Mark Zuckerberg, and a member of the Motley Fools’ board of directors. John Mackey, former CEO of Amazon’s subsidiary Whole Foods Market, is a member of the board of directors of Motley Fool. Selena Maranjian has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft and Nvidia. Motley fools in position and recommends letters, Amazon, Apple, Metaplatform, Microsoft, NVIDIA, Tesla and Vanguard S&P 500 ETF. Motley Fools suggest the following options: January 1, 2026, Microsoft $395 Phone, Short January 2026, Microsoft $405 Phone. Motley Fool has a disclosure policy.
This is the smartest way to invest in the S&P 500 in July, originally published by Motley Fool
