Where can I invest in the S&P 500? 3 online brokers you can use

Do you wonder how to invest in the S&P 500? Then you have come to the right place. In this article, you will get a simple introduction to how you can invest in the S&P 500 index, so that you can enjoy good returns for years to come.

Investing in the S&P500 index is very easy and it takes no more than a few minutes to get started. 

However: it is not enough just to find out where to buy it. The S&P index comes in heaps of different variants, from different providers. Therefore, you also get tips on which variants of the S&P 500 have done the best in recent years, and what you need to look for when it comes to fees and costs before you decide.

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Further in this article you will get the answers you need - and I will show you how to get started investing in the popular stock index and which 3 online brokers I think you can consider.

My top choice: Nordnet

I thought I'd go over what the S&P 500 index actually is and the benefits of it before we jump to the three different online brokers where you can buy this index fund.

Therefore: If you are short on time and don't want to read everything, you should get my recommendation for where to invest in the s&p 500 immediately.

The online broker Nordnet is my absolute favorite when it comes to online brokers. The main reason is their wide selection of both stocks and funds, as well as strong customer service and wonderful learning resources such as Shareville and Pengepodden.

In the table below you can see the three best S&P 500 ETFs in the last 5 years. Choose for yourself which of them you decide on.

Click on one of the indices in the box below and start investing in the S&P 500 index today!

ETF	TICKER	Return last 5 years
Vanguard S&P 500 ETF	VOO	56,21 %
SPDR S&P 500 ETF Trust	SPY	56,20 %
iShares Core S&P 500 ETF	IVV	55,84 %

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What is the S&P 500 Index?

The S&P 500 is a stock index that represents the entire US stock market. The S&P 500 consists of the 500 largest US listed companies and thus has a piece of all sectors. 

This is an index fund tailored for you who do not want to use a lot of time to familiarize yourself with the stock market, but who still want to take part in the value creation that is taking place. The index has given very good returns over time.

Since you get broad exposure to 500 companies, an investment in the S&P 500 will be a far lower risk than investing in a handful of individual stocks.

You will also be invested in more companies than if, for example, you were only invested in the main list on the Oslo Stock Exchange, which has just over 300 companies. 

Benefits of investing in the S&P 500 index

Investor legend Warren Buffett has pointed out on several occasions that if you don't intend to spend a lot of time monitoring your investments, he would choose the S&P 500 index.

I completely agree. Among other things, because you get:

1. Strong returns 

Historically, index funds have on average given a return of around 10 per cent annually. This means that if you had invested $10,000 in 1990, it would have grown to well over $200,000 30 years later - without you having had to do anything! (source: officialdata .org)

Imagine what the sum could have been if you had added more money along the way too!

2. A broad exposure to the stock market

You invest in several large companies representing all different industries. In other words: should a sector suddenly do poorly, you will not be over-exposed, since you are diversified.

3. Lower risk than individual shares

The investment has a much lower risk than investing in individual companies, since with the S&P 500 you spread your money over several large US stocks gathered in a basket. 

In other words - if one or two American companies go bankrupt, you are safe with your 500 companies.

Different types of S&P 500's

There are several variants of this index. as I showed you at the beginning. Which index is the best to buy? Well, let's take a look at those with the best returns in the last 5 years.

The three best S&P 500 ETF's you can choose from

Click on the current ETFs to go straight to Nordnet, where you can buy them.

ETF	TICKER	Return last 5 years
Vanguard S&P 500 ETF	VOO	56,21 %
SPDR S&P 500 ETF Trust	SPY	56,20 %
iShares Core S&P 500 ETF	IVV	55,84 %

How to choose the best one

The three ETF's you see in the table above have several similarities: you can find them mostly with most online brokers, including all mentioned in this article. They are also very liquid, meaning you can buy and sell quickly.

I haven't picked a winner out of the three options, but I advise you to take a look at the following factors before investing:

• Management fee. VOO and IVV at the time of writing have the lowest management fee of 0.03% - about a third of the SPY ETF. Although the difference between 0.03% and 0.0945% may seem insignificant, such fees can be very decisive for the total return over several years.
• Price. There is a slight difference in the price of each fund at the moment. It should not necessarily be a decisive factor, but it can affect how many shares you can buy at any given time.
• Returns. There are some slight differences between these funds, even though they all track the same index. These differences are typically related to returns, taxes and dividends. What has influenced the return of the various funds is easiest to see over time. That said: there is no guarantee that the index fund with the best return right now will have the best return in the future.

Where can I invest in the S&P 500?

Now, you will receive 3 specific proposals for share platforms where you can invest in the S&P 500. My tip is to choose a trading platform with low fees and helpful, educational investment resources in addition.

I only recommend platforms I actually use myself. Therefore, this list will not be very long, but rather revolve around quality platforms that I can actually vouch for.

Here you can invest in the S&P 500:

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1. Nordnet

My preferred choice for online broker where you can invest in s&p 500 index is Nordnet.

There are several advantages to saving and investing with Nordnet. Some of the benefits include:

• You can choose from over 1,800 funds and ETFs, including the S&P index
• You can be inspired and learn from the best through Shareville - the Nordic region's largest social investment network
• Good welcome offer for new customers - trade from NOK 1 (0.035%) on the Nordic stock exchanges
• A platform that is easy to use, including an award-winning Nordnet app
•  Low fees

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2. DNB

DNB Markets is the platform I myself started buying shares and funds in, so it is probably close to my heart for that reason when I have to recommend a stock platform.

They have a very useful app in the Spare app, where you can see your stock and fund holdings, as well as your BSU, pension account and current account.

It is easy to get started with investing in the S&P 500 if you are already a customer. DNB has a large selection of shares, ETFs and funds to choose from.

But beware: DNB generally has relatively high fees compared to Nordnet. If you want to shop often, Nordnet may therefore be a better alternative. Therefore compare the fees on the index funds on both platforms before you make a choice.

Read also: What is a good idea to invest in now? (Guide)

3. eToro

Jeg har hatt en bruker på eToro siden rundt 2011, og det går fint å investere i S&P 500 indeksen her – men dette er i mine øyne et sted for deg som er interessert i en enkel måte å investere i kryptovaluta på.

Dette er en handelsplattform hvor du kan handle i ulike instrumenter og aktivaer som CFD, råvarer eller gearing.

Er du helt ny i investering, og ikke har tenkt til å bruke mye tid på investeringene dine, anbefaler jeg at du holder deg til Nordnet eller DNB. Og gjerne fast sparing i et indeksfond.

Risikoen for at du taper penger er enda høyere med mer komplekse produkter. Fond og aksjer er mer enn godt nok til å skape god avkastning.

Fordel med eToro: Veldig lave kostnader på kjøp og salg av aksjer og fond, og enkelt å bruke. Lett å handle kryptovaluta og råvarer.

The 10 largest companies in the S&P 500 

Companies	Industry
Apple Inc	Technology
Microsoft Corp	Technology
Amazon.com Inc	Consumer goods
Alphabet Inc Class A	Communication
Berkshire Hathaway Inc Class A	Financials
Alphabet Inc class C	Communication
UnitedHealth Group Inc	Healthcare
Johnson & Johnson	Healthcare
NVIDIA Corp	Technology
Exxon Mobil Corp	Energy

Read also: shares for beginners: a great guide to investing in shares and fund