2 Unstoppable Leading ETFs to Buy with $900 in S&P 500 Bull Marketplace

S&P 500 (^GSPC 0.55%, Represents 500 corporations (with 503 stocks) and includes stocks from all 11 sectors of the US economic system, giving it some relative diversity. Manufacturing sector stocks account for around 30% of its weighting, giving investors plenty of exposure to some fast-growing stocks, including those related to artificial perception (AI).

The S&P 500 crashed to untested record highs in January 2024, confirming a bull market that began when the index bottomed in late 2022. Since the closest it has continued its upward move with a gain of about 18% so far in 2024.

Even with all the positive factors, it’s not too late to buy as any opportunity for the S&P 500 to see some growth is partial. Since 1919, the index has been fixed on an annual basis for approximately 3 out of every 4 years of its life. This means that people who can invest in the market overall have excellent chances of earning a living. Trade-traded finance (ETFs) provide an easy way to capture those positive factors, or in some cases even outperform them.

Leading Edge Issues is one of the cheapest ETFs on the planet. This is why investors who have $900 cash available to invest will likely need to value it in order to profit from this latest bull market and buy a portion of it. Leading Edge S&P 500 ETF (woo 0.62%, and a ratio of Leading S&P 500 Expansion ETF (woog 0.58%,,

1. Leading S&P 500 ETF

The leading S&P 500 ETF has a simple objective: monitor the efficiency of the S&P 500 index by holding equal shares and maintaining equivalent sector weightings. With an expense ratio of only 0.03% (Treasury’s share is cut at every opportunity to control prices), it is extremely reasonable for buyers to hold.

In buck terms, this means a $10,000 investment in an ETF will incur only a $3 annual fee. Leading Edge says related finance offered through competition is 26 times more expensive with an average expense ratio of 0.78%, which will negatively impact returns in the long term.

As I said earlier, generation is the most important of the S&P 500’s 11 sectors, with a weighting of 30.6%. In fact, the five stocks that top the index (and the Leading Edge ETF) operate in the manufacturing industry:

Knowledge Supply: The Leading Edge. Portfolio weightings are accurate as of May 31, 2024, and are subject to transfer.

All five of those companies have entered the AI ​​race. Microsoft later pledged to invest $10 billion in ChatGPT author OpenAI, and this influenced a generation of start-ups to develop their own digital workman called Copilot. Apple also partnered with OpenAI to create its Apple Insigt device, which is capable of being setup with devices running iOS 18 following the occasion.

Nvidia designs semiconductors that connect every AI creation imaginable. Its graphics processing devices (GPUs) for the information center are the most up-to-date products in Silicon Valley, with tech giants and start-ups purchasing as many as they are able to get their fingers on.

Outside of generation, the financial sector is the second largest in the S&P 500 with a 12.8% weighting. This includes funding banks such as JPMorgan Chase And shoppers prefer banks stock of us, Healthcare comes with a 12% weighting, followed by the consumer discretionary sector at 9.8%.

The Leading Edge ETF has delivered a compound annual return of 14.5% since its inception in 2010 (in series with the S&P 500). Still, this is higher than the index’s long-term average annual return of 10.4% since 1957, largely due to the gains of high-growth generation stocks during the Life Decade.

Above average returns in support of technologies like AI may continue in the near term, although investors should expect returns to normalize to 10% again in line with the phenomenon in the longer term.

2. Leading S&P 500 Expansion ETF

Buyers willing to accept negligible additional opportunity for the chance to earn higher returns may have to rely on the leading S&P 500 Expansion ETFs. Its purpose is to simulate s&p 500 spread Index, which keeps only the best-performing stocks within the S&P 500 and excludes the rest. Those stocks are decided according to elements like momentum and gross sales growth of the underlying corporations.

The ETF currently consists of 229 stocks from 11 sectors, similar to the S&P 500, but the weightings are Very Other. For example, the generation represents 48.6% of the S&P 500 Expansion Index, resulting in the majority of momentum and revenue growth coming from the generation.

As a result, the ETF is dominated by the same 5 holdings as the S&P 500, except that each of them has a much higher weighting:

Knowledge Supply: The Leading Edge. Portfolio weightings are accurate as of May 31, 2024, and are subject to transfer.

The Leading Edge S&P 500 Expansion ETF has an expense ratio of 0.1%. While that’s significantly higher than the S&P 500 ETFs, it’s still much lower than the industry average for similar budgets, which is 0.95% (according to Leading Edge).

Also, the treasury has delivered a compound annual return of 16.2% since it was founded in 2010. Even though this is only 1.7 percentage points higher by chance than the standard S&P 500 ETF, the results are significant bucks due to the witchcraft of compounding:

Calculation through manufacturer.

The S&P 500 Expansion ETF is rebalanced once a quarter, meaning the worst performing stocks are removed and replaced with the best performing ones from the S&P 500. Therefore, Treasuries should always outperform the S&P 500. Long term (in consideration).

On the other hand, the treasury is at risk of suffering higher losses on a lower note as a result of its larger performance in the production sector. For example, if AI fails to live up to the hype, stocks like Microsoft and Nvidia could decline significantly. This would cause the ETF to decline more than the S&P 500, at least until the upcoming rebalancing begins.

Buyers should always keep that opportunity in mind. However, as long as tech continues to weigh on the market, the leading S&P 500 Expansion ETF should deliver stellar long-term returns.

The Store of Us, The Ascent, is the promotional spouse of a motley idiot corporate. JPMorgan Chase, The Ascent, is the promotional spouse of a motley idiot corporate. Randi Zuckerberg, former director of marketplace construction and Facebook spokesperson, and sister of Mark Zuckerberg, CEO of Meta Platform, is a member of The Motley Fool’s board of administrators. John Mackey, former CEO of Entire Meals Marketplace, a subsidiary of Amazon, is a member of The Motley Idiot’s board of administrators. Anthony Di Pizio declined to hold a position in any of the stocks discussed. The Motley Idiot has positions in and recommends Amazon, Apple, Store of the Us, JPMorgan Chase, Meta Platform, Microsoft, Nvidia, and the Leading Edge S&P 500 ETF. The Motley Idiot recommends mentioning the options: $395 off Microsoft in January 2026 and $405 off Microsoft in January 2026. The Motley Idiot has disclosure coverage.