What is the most liquid S&P 500 ETF?
SPDR S&P 500 ETF Trust (SPY)
However, it is the most well established and the most liquid fund in the entire stock market, giving active traders a huge advantage in their ability to rapidly buy and sell positions.
Trading volume indicates the liquidity and number of investors. The higher the trading volume, better the liquidity of the fund. Among large-cap ETFs, Nippon India ETF Nifty 50 BeES has the highest 1-year average trading volume of Rs. 62.36 crore followed by SBI Nifty 50 ETF with Rs.
| ETF | Ticker | Annualized 5-year return |
|---|---|---|
| Vanguard S&P 500 ETF | VOO | 14.72% |
| iShares Core S&P 500 ETF | IVV | 14.27% |
| SPDR S&P 500 ETF Trust | SPY | 14.14% |
SPY: The State Street SPDR S&P 500 ETF was the original exchange-traded fund and remains one of the most liquid S&P ETFs. It is also one of the most active ETFs for options traders.
Liquidity of SPX and SPY Options
ETFs are known for being broad-based. Since SPY options have tighter markets, they are known to be more liquid than SPX options. SPY options usually feature a tighter speed between their bid and offer than SPX options making them more price efficient for traders and investors.
- HDFC Liquid Fund.
- Canara Robeco Liquid Fund.
- Navi Liquid Fund.
- WhiteOak Capital Liquid Fund.
- Quantum Liquid Fund.
- Parag Parikh Liquid Fund.
- Motilal Oswal Liquid Fund.
- TRUSTMF Liquid Fund.
- One Day Rate Investment - Nippon. ₹999.99. 0% 47,95,353. 12062.78.
- Short-Term Rate Investment Basket - ICICI Prudential. ₹999.99. 0% 27,57,146. 3025.13.
- DSP BlackRock Liquid ETF. ₹999.99. 0% 7,17,649. 1387.32.
Secondary market liquidity is determined primarily by the volume of ETF shares traded. To assess secondary market liquidity, follow an ETF at different times of day, over various time periods, and note how it's affected by market environments.
| Symbol | Name | AUM |
|---|---|---|
| SPY | SPDR S&P 500 ETF Trust | $535,541,000.00 |
| IVV | iShares Core S&P 500 ETF | $454,120,000.00 |
| VOO | Vanguard S&P 500 ETF | $435,214,000.00 |
| VTI | Vanguard Total Stock Market ETF | $389,092,000.00 |
SPDR is an acronym for the Standard & Poor's Depositary Receipts, the former name of the ETF. It is designed to track the S&P 500 stock market index. This fund is the largest and oldest ETF in the USA. SPDR is a trademark of Standard and Poor's Financial Services LLC, a subsidiary of S&P Global.
What Vanguard funds beat the S&P 500?
Vanguard Growth & Income Fund (VGIAX)
VGIAX's one-two punch of investment goals helped it beat the overall stock market in 2022 and 2023. Over the past 10 years, this fund's average annual return is about even with the S&P 500. Likewise, its trailing 12-month dividend yield approaches the broad market's.
The funds are virtually identical. Don't overthink your selection. VOO edges SPY slightly in a lower expense ratio. Both funds are excellent, low-fee stock index fund options for your portfolio.
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
Summary. Investing in the S&P 500 index fund, such as VOO, is a winning long-term strategy. Historical data shows that the market has consistently gone higher despite obstacles and downturns.
If you don't want to put a lot of effort into managing your investments, then S&P 500 ETFs are a good solution. But if you're willing to do the work, then you might do even better in the long run with a portfolio of hand-picked stocks (although, the odds are against you).
Looking closely, you can see that each SPX contract is about 10 times the value of a SPY option because the S&P 500 Index is approximately 10X times higher than SPY in numerical terms. Although trading SPX options requires more capital, the tax treatment on SPX options is better.
While the two ETFs follow the same strategy, they earn different ratings. VOO earns a top rating of Gold, while SPY earns the next best rating of Silver. Almahasneh says the reason is fees. VOO charges 0.03%, while SPY charges 0.09%.
The SPY ETF is highly liquid, meaning it can be easily bought and sold on major stock exchanges. Its significant trading volume ensures that investors can enter or exit positions without impacting the market price significantly. This liquidity makes it a preferred choice for many traders and institutions.
- Money – actual cash currencies.
- Money market assets – short-term debt securities such as CDs or T-bills.
- Marketable securities – stocks or bonds.
- US Government bonds – only if the maturation date is one year or less.
- Mutual funds or exchange-traded funds (ETFs)
Liquid funds are NOT risk-free. A quick look at the performance of liquid funds will tell you that these funds offer around 7-9% returns on an average. Hence, they are better than the 4% returns earned on savings account deposits.
Which liquid fund gives more returns?
| Fund Name | Category | 1Y Returns |
|---|---|---|
| Sundaram Liquid Fund | Debt | 7.4% |
| Canara Robeco Liquid Fund | Debt | 7.4% |
| Mirae Asset Cash Management Fund | Debt | 7.2% |
| Nippon India Liquid Fund | Debt | 7.4% |
| Fund (ticker) | YTD performance | 5-year performance |
|---|---|---|
| Vanguard S&P 500 ETF (VOO) | 6.5 percent | 14.6 percent |
| SPDR S&P 500 ETF Trust (SPY) | 6.5 percent | 14.6 percent |
| iShares Core S&P 500 ETF (IVV) | 6.5 percent | 14.6 percent |
| Invesco QQQ Trust (QQQ) | 6.3 percent | 21.1 percent |
| ETF | Assets Under Management | Expense Ratio |
|---|---|---|
| Vanguard Information Technology ETF (VGT) | $71.7 billion | 0.1% |
| Invesco AI and Next Gen Software ETF (IGPT) | $254 million | 0.6% |
| MicroSectors FANG+ Index 3X Leveraged ETN (FNGU) | $3.3 billion | 0.95% |
| Vanguard U.S. Quality Factor ETF (VFQY) | $292 million | 0.13% |
- Vanguard S&P 500 ETF (VOO)
- Schwab U.S. Small-Cap ETF (SCHA)
- Invesco QQQ Trust (QQQ)
- Vanguard High Dividend Yield Index ETF (VYM)
- Vanguard Total International Stock ETF (VXUS)
- Vanguard Total World Stock ETF (VT)
- iShares Core U.S. Aggregate Bond ETF (AGG)
Key Takeaways. Vanguard manages and makes trades on an enormous amount of funds and stocks and due to that, their funds are considered some of the most liquid funds on the market. All buy or sell orders are executed at the end of the trading day, when the fund rebalances and recalculates its net asset value, or NAV.
