1 No-Brainer S&P Index Fund to Buy Right Now for Less Than $1,000
Key Takeaways
Exchange-traded funds (ETFs) make easy. While you may be able to make more money by in individual stocks, having a good ETF in your portfolio creates a great deal of both...
Article Overview
Quick insights and key information
4 min read
Estimated completion
investment
Article classification
July 1, 2025
06:26 AM
The Motley Fool
Original publisher
Exchange-traded funds (ETFs) make easy
While you may be able to make more money by in individual stocks, having a good ETF in your portfolio creates a great deal of both diversification and consistency
Over the long term, the broader market, represented by the S&P 500, has duced steady gains over the decades, with gains of more than 100% in the last five years
Is this the most exciting investment spect
Well, not when you compare it to directly in a flashy stock Tesla
But finding investments that track the S&P 500 index helps to minimize risk
Let's talk one ETF in particular
Simplicity with strength The basic investment thesis behind the is Core S&P 500 ETF (IVV -0. 03%) is straightforward: Over the long term, the U
By owning s in IVV, you gain exposure to all 500 companies in the S&P 500, including industry leaders Apple, Microsoft, Amazon, and Johnson & Johnson
This broad exposure helps spread out risk
If one sector underperforms, gains in another can help balance it out
If you're a new investor, or looking to build a strong core for your portfolio, the is Core S&P 500 ETF is a solid foundation
You're not betting on any single company to outperform
Instead, you're in the idea that the American economy will continue to expand over time, and that the largest companies within it will generally do well
This is a concept that superinvestor Warren Buffett has spoken for a long time
Image source: Getty Images
Low cost and reliability Another reason IVV is so attractive is its cost
With an expense ratio of just 0. 03%, it's one of the most affordable ways to gain exposure to the S&P 500
That low fee means more of your money stays invested and working for you, instead of being chipped away by fund management costs
Over time, small differences in fees can have a significant impact on your total returns
IVV's low cost makes it an efficient way to invest, especially if you're focused on maximizing long-term gains without sacrificing too much to a fund's expenses
It isn't flashy, but it works Admittedly, in an ETF that tracks the S&P 500 might not be the most exciting strategy
It's not going to vide the kind of dramatic, short-term returns that a hot stock Tesla might offer
But it also doesn't expose you to the same level of risk
The beauty of IVV lies in its reliability and simplicity
You're not chasing fads or trying to time the market
You're vesting in a broad slice of the U
Economy and letting time do the work
A smart building block All in all, the is Core S&P 500 ETF is an ideal investment for those who value simplicity, cost-effectiveness, and long-term performance
IVV has dered gains of 103% over the last five years; whether you're just starting your journey or looking to strengthen your existing portfolio, it offers a ven way to participate in the growth of the U
Stock market without overcomplicating things
It might not be flashy, but it's smart -- and in, smart tends to win over time
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors
David Butler has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, and Tesla
The Motley Fool recommends Johnson & Johnson and recommends the ing options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft
The Motley Fool has a disclosure policy.
Related Articles
More insights from FinancialBooklet