How to Invest in the S&P 500 in 2025: Index Funds and ETFs

The S&P 500 is a well-known stock market index — an index isn’t an investment itself, but a list of companies that are related in some way or otherwise grouped together. You can’t directly invest in a stock market index like the S&P 500, but you can invest in an index fund or exchange-traded fund that tracks the index.

The easiest way to invest in the S&P 500

An S&P 500 index fund or ETF is the simplest way to invest in the index. These funds aim to replicate the returns of the S&P 500 by tracking it, offering investors exposure to S&P 500 companies without the effort involved in purchasing the individual stock of each company.

Investing in an S&P 500 fund can instantly diversify your portfolio and is generally considered less risky…

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