What S&P 500 proxy do you invest in and why

[anitya]

Initially I bought SPY because that is the one I knew for S&P 500 ETF.  Then I tried to use a Vanguard product and did not like bid-ask spreads and discount-premiums - part of it could be my behavior of putting in trades at market close.  So, I reverted back to SPY.   But if you own this for 10-20 years, the slightly higher ER adds up.   What do you use for S&P 500 proxy and why?

[FD1000]

Why use SPY, at VG you can use VFIAX with lower ER than SPY, and no bid-ask.

[roi2020]

I'm invested in a S&P 500 CIT within my 401(k).
If the CIT was unavailable, I'd invest in VFIAX since it is an excellent choice and I have accounts at Vanguard.
VOO or IVV are worthy of consideration if you prefer S&P 500 ETFs.
Both ETFs have a large asset base, low expenses, and low bid/ask spreads.

VOO

$337.5 billion net assets
0.03% expense ratio
30-day median bid/ask spread: +0.01%
premium/discount (1-month rolling avg.): +0.01%

IVV

$354.4 billion net assets
0.03% expense ratio
30-day median bid/ask spread: +0.01%
premium/discount (1-month rolling avg.): +0.01%

[anitya]

Thanks.

[yogibearbull]

There is also a related thread at MFO, www.mutualfundobserver.com/discuss/discussion/61509/state-street-etfs#latest

[Deleted]

BKLC has mirrored the 500 since its inception. ER is 0%...ZERO!

[FD1000]

Sept 21, 2023 11:46:11 GMT @django said:

BKLC has mirrored the 500 since its inception. ER is 0%...ZERO!

Only problem BKLC isn't the SP500, it's based on Morningstar® U.S. Large Cap Index, just as FZROX (ER=0%) corresponds to the total return of a broad range of U.S. stocks.
For 3 years, VOO leads (schrts.co/pmVNMzdW). For 1 year BKLC leads. This shows that the ER is negligible.

[johntaylor]

C Fund, low ER

[yogibearbull]

TSP C Fund is indexed to SP500. At one time, the TSP index funds run by Blackrock/BLK had the lowest ERs, but no longer. TSP C Fund/SP500 has the ER of 5.9 bps, but now, SPLG (2 bps), IVV (3 bps), VOO (3 bps) have lower ERs.

[anitya]

This is for use in taxable accounts.

ER alone is not enough for superior total returns but when I look at IVV, VOO, & SPLG, using M* charts, all outperformed SPY since respective inception. However, when I look at the last 10 years, SPLG is behind SPY and VOO and IVV are only 1.5% ahead of SPY in total returns. $150 when investing $10,000. I am inclined to go with IVV.

yogibearbull, Is VOO a different share class of VFIAX? Seems like it. VOO website says, "Also available as an Admiral™ Shares mutual fund" but wanted to check with you.

[yogibearbull]

anitya , VOO is indeed the ETF class of Admiral VFIAX. BTW, although VG has dropped Investor VFINX from its website, its current quotes are still available from M*, Yahoo Finance, StockCharts, Portfolio Vizualizer, etc - it has a longer history too.

[roi2020]

ETFs are often more tax-efficient than mutual funds.
However, that's not the case for Vanguard's passive mutual funds which have a corresponding ETF share class.
Tax efficiency for VFIAX and VOO should be the same.

[anitya]

I bought IVV in the after market in the taxable account.  This thing trades as well as SPY, as one would expect given its size, even in the after market.  This is not a market bottom call. I sold FXAIX in the retirement account in early August and told myself I will start replacing it if SPY gets closer to 430.

Thanks, yogibearbull . For reasons you know, did not want to buy a Vanguard ETF that is a different class of their OEF.

[steelpony10]

     VTI. I would have chose VOO (I agree with Buffet) but someone would mention diversification and allocation ruining a good set up. 3600+(?), 82% large and 18% mid and small size U.S. equities are enough to protect against U.S. cost of living increases if that’s where one lives.