INVESTING STRATEGY
Which S & P 500 ?
Im new to investing, but I keep hearing everyone talking about investing into S&P 500 as a good option. When I searched the code theres several S&P 500 options? What’s the difference? Are they focusing on different sectors ? Is there one universal one everyone tends to choose ? Cheers
Brenton Su.
18 January 2023
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2 Comments
almost 2 years ago
Hey Null Null.
The S&P 500 as you might know is an index which tracks the largest 500 US companies.
There are index funds available to invest in which in turn create this portfolio of 500 stocks for you for a low fee. The reason there are multiple options is that there are multiple fund managers which offer these index funds. Some are managed from America, while others are managed here.
One of the most common and widely popular options for Aussies wanting to invest in the S&P 500 is the fund IVV, which you can find here: https://www.blackrock.com/au/individual/produ...
You can find it listed in the most popular Pearler shares list on this page: https://pearler.com/explore/invest/au-shares
It’s also available in Pearler Micro from memory too if you were hoping to invest very small amounts.
Hope that helps.
Dave
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Replynick nicolaides
PEARLER
almost 2 years ago
Hi JD, great question – there are often many ETFs tracking the same or similar indexes.
One advantage of this is it makes it quite easy to compare things like fees, size of the manager or tax domiciles.
A disadvantage is it can be hard to make a decision when the things you’re comparing are very close or even the same, meaning your choice between them probably isn’t going to make a massive difference to the investment returns.
I haven’t been very helpful so far, sorry.
And if you talk to 3 different S&P500 investors chances are they’re investing in 3 different (but similar) options…
One way Pearler tries to help with your research is making public the combined investments of the community. We recently published this blog about the most invested, maybe it will help. https://pearler.com/explore/learn/blog/most-p...
Of course, you need to consider your position and needs before making a decision, but we hope this data is helpful.
Quick note: when you go to our invest > shares page the lists are set to rank by most invested, so this is always available for you.
Hope some of this helps
Nick
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