How to invest in an S&P 500 ETF

An S&P 500 ETF is an ETF that lets you invest in the 500 largest listed companies in the US. 

What is an S&P 500 ETF? 

Let’s have a look at the individual words in the name to explain what an S&P 500 ETF is: 

S&P stands for Standard & Poor's. That is a well-known American company that compiles share and bond indices.

S&P 500 is a stock market index compiled by Standard & Poor's Dow Jones Indices. An index always shows the (weighted) average value of a group of investments. In the case of the S&P 500, these are the stocks of the 500 largest listed companies in the US (measured by market capitalisation). The S&P 500 index is often seen as a benchmark for the American stock market: the price says something about how US businesses are performing, and therefore the American economy.

ETF stands for 'Exchange Traded Fund'. An ETF is a financial product that allows you to easily invest in many different stocks or bonds at the same time. When you invest in ETFs, you don't need to buy each stock individually: you buy a large number all at once. In the case of the S&P 500 ETF, this means you only need to make 1 transaction to invest in 500 stocks

Which companies are included in the S&P 500?

Because the S&P 500 consists of the 500 largest listed companies in the US (measured by value) and companies can grow and shrink, the composition changes over time. At the moment (in 2026) tech companies dominate, such as Nvidia, Apple, Microsoft, Amazon and Alphabet (of Google). But again: that can change.

There are not only tech companies in the S&P 500. Sectors such as healthcare, financial services, consumer goods, industry, and energy are also represented.

If you want to know exactly which companies are currently in the S&P 500, then take a look here for an up-to-date overview.

Why invest in an S&P 500 ETF?

With an S&P 500 ETF you can easily invest in the 500 largest companies in the US, as you don't need to buy all the stocks separately. You’re also sure to invest in leading companies, often with well-known names. 

By spreading your investments across different companies and sectors, you reduce your risk. However, you only invest in American companies. Should the American economy encounter difficulties at some point, this could affect your returns: they may fall or even turn negative. In the latter case, you’d make a loss if you were to sell your ETF.

The S&P 500 ETF at Peaks

Various parties offer S&P 500 ETFs, such as Vanguard, iShares and State Street. And also, there are various platforms on which you can buy these ETFs.

At Peaks you can invest in the S&P 500 ETF from State Street. This is currently the S&P 500 ETF with the lowest costs available on the market.

S&P 500 ETF at low cost

The total fund costs of the S&P 500 ETF are very low at 0.03% per year (total expense ratio + transaction costs of the fund).

Peaks charges no transaction costs whenever you buy or sell the ETF.

You do pay spread on the stock market. This is the difference between the price at which market traders are willing to buy or sell stocks and ETFs. Because the State Street ETF is one of the largest S&P 500 ETFs in terms of assets under management, there is a high volume of trading in it. This means the spread is lower than with other S&P 500 ETFs.

Adding the S&P 500 ETF to your portfolio

You simply need to add the ETF to a new or existing investment portfolio, which takes you only a few minutes in the app. Because Peaks requires no minimum deposit, you can invest in the 500 largest companies in the US with as little as €1.

You can choose to create a separate portfolio containing only the S&P 500 ETF, but you can also add it to a portfolio with other ETFs so that you spread your risks further. It’s all up to you. 

Adding the S&P 500 ETF to an existing portfolio

• Step 1. Open the app and go to 'Portfolio
• Step 2. Press 'Edit'
• Step 3. Add the S&P 500 ETF
• Step 4. Adjust the allocation so it comes to 100%
• Step 5. And start investing!

Creating a new Peaks portfolio with the S&P 500 ETF

Creating a new Peaks portfolio with the S&P 500 ETF is very straightforward:

• Step 1. Open an Investment account
• Step 2. Under 'Portfolio', choose 'Custom Portfolio'
• Step 3. Add the S&P 500
• Step 4. (Optionally) add other ETFs to your portfolio and make sure your allocation comes to 100%
• Step 5. Ready? Let's get started!