Investing in the U.S. market, specifically the S&P 500, can be an excellent way for investors to grow their portfolios. And exchange-traded funds (ETFs) can make it easy for investors to track the broad index, which will give them exposure to 500 of the largest and best companies to invest in.
For Canadian investors, a fund to consider for this purpose is the BMO S&P 500 Index ETF (TSX:ZSP). It has a low management expense ratio of 0.09% and its goal is to replicate the S&P 500’s performance (net of expenses). For investors, this can allow you to keep your risk relatively low while having a position in some excellent stocks and achieving a lot of diversification. Whether you want exposure to Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Tesla (NASDAQ:TSLA), or other top stocks, this ETF will have you covered. Over the past five years, the fund’s total returns (including dividends) have come in at 112%, meaning that the ETF would have more than doubled your money over that stretch.
While valuations may be high in the markets today, the S&P 500 is a fairly safe bet to increase over the long haul. There may be corrections and bear markets ahead but if you’re committed to remaining invested for years and perhaps even decades, this can be a great investment to simply buy and hold for the long term, and to build your portfolio around.
The ETF can drastically simplify your investing strategy by giving you a go-to place to invest in on a regular basis.