The SPLG ETF from SPDR tracks the S&P 500 Index and has lowered its fee to 0.02%, making it cheaper than its competitors VOO, IVV, and SPY in 2024. I briefly review it here.
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Recall that the S&P 500 Index is simply a basket of the 500 largest profitable publicly traded companies in the United States by market capitalization.
The S&P 500 comprises roughly 82% of the total U.S. stock market by weight and spans all market sectors, so it is often used as a sufficient barometer for “the market” as a whole (the US market, at least). Whether you’re a beginner or a seasoned investor, the S&P 500 is a reliable cornerstone of a long-term buy-and-hold investment strategy for US large cap stocks. If you’ve arrived on this page, you likely already know those facts.
Previously, more popular ETFs like VOO from Vanguard, IVV from iShares, SCHX from Schwab, and SPY from SPDR were the go-to vehicles to access the S&P 500. I covered all three of those in a separate post here. VOO and IVV cost 0.03%. But now SPDR has lowered the fee on its SPLG ETF down to 0.02%, making it cheaper than VOO and IVV.
SPLG previously tracked the Russell 1000 Index and switched to the S&P 500 Index in 2020. Since SPLG now tracks the exact same index as these competitors, it now seems like the obvious choice for an S&P 500 ETF, as we should prefer the lowest fee whenever possible for any given target exposure. Fees are one of the few aspects of investing that investors can control, and differences in fees can add up over decades.
SPLG actually launched in 2005 and has amassed over $40 billion in assets, but it has not always been this cheap. Its lower fee has attracted new attention and new assets.
SPLG should be available at any major broker. My choice is M1 Finance. The online broker has zero transaction fees and offers fractional shares, dynamic rebalancing, and a modern, user-friendly interface and mobile app. I wrote a comprehensive review of M1 Finance here.
Disclosures: I am long VOO in my own portfolio.
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Disclaimer: While I love diving into investing-related data and playing around with backtests, this is not financial advice, investing advice, or tax advice. The information on this website is for informational, educational, and entertainment purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a research report. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. I mention M1 Finance a lot around here. M1 does not provide investment advice, and this is not an offer or solicitation of an offer, or advice to buy or sell any security, and you are encouraged to consult your personal investment, legal, and tax advisors. Hypothetical examples used, such as historical backtests, do not reflect any specific investments, are for illustrative purposes only, and should not be considered an offer to buy or sell any products. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here.
