Here's the Smartest Way to Invest in the S&P 500 in December

• Vanguard S&P 500 ETF is an ultra-low-cost mode to ain the S&P 500.

• If you are acrophobic astir valuation, the iShares S&P 500 Value ETF is an alternate mode to ain the S&P 500.

• Invesco S&P 500 Equal Weight ETF could beryllium a bully prime if you privation to debar the tech sector's existent overweight presumption successful the index.

• 10 stocks we similar amended than Vanguard S&P 500 ETF ›

When banal traders and investors speech astir the "market," they are usually referring to the S&P 500 (SNPINDEX: ^GSPC). For those looking to put successful the "market," the simplest way is to bargain into an S&P 500 exchange-traded money (ETF). In fact, that's precisely what world-famous capitalist Warren Buffett has recommended astir investors do.

There's conscionable 1 problem: There are respective antithetic ways to put successful the S&P 500. Given that the scale is presently hovering adjacent all-time highs, you whitethorn privation to see a mates of alternatives that amended relationship for the precocious valuation. Here are a fewer of the smartest options arsenic December gets underway.

The S&P 500 is simply a committee-selected database of astir 500 U.S. companies. The chosen stocks are mostly ample and economically significant. The existent extremity of the scale isn't to way the market, but to beryllium typical of the broader U.S. economy.

The stocks successful the scale are weighted by marketplace cap, truthful the largest companies person the biggest interaction connected performance. That makes logical sense, since that's mostly however the system works.

Overall, the S&P 500 scale is reasonably well-constructed. However, each ETF oregon communal money that straight tracks the scale does the nonstop aforesaid thing. That is wherefore you'll privation to absorption connected buying the cheapest enactment that offers the astir concern flexibility. The champion prime is apt to beryllium Vanguard S&P 500 ETF (NYSEMKT: VOO), which has an ultra-low disbursal ratio of conscionable 0.03% and trades passim the time (mutual funds tin lone beryllium traded astatine the extremity of the day).

As noted, the S&P 500 is trading adjacent all-time highs. Some investors whitethorn beryllium disquieted astir the index's valuation, which is not unreasonable. A compromise for specified investors is iShares S&P 500 Value ETF (NYSEMKT: IVE). This exchange-traded money uses the publication value-to-price, earnings-to-price, and sales-to-price ratios to prime stocks from the afloat database of S&P 500 stocks. The extremity is, arsenic the sanction implies, to bargain stocks that are comparatively cheap.

A value-focused attack could beryllium charismatic to much blimpish investors, fixed that fast-growing exertion stocks are presently the superior operator of the S&P 500's performance. You'll wage a small much for this ETF, fixed its disbursal ratio is 0.18%. However, if you are disquieted astir rotation retired of maturation and into value, this could beryllium the astute prime for you.