S&P 500 ETF: how to invest?

Updated on 31 July 2026

An S&P 500 ETF tracks the 500 largest listed US companies in a single order. It can be held in a securities account (CTO), life insurance or, subject to conditions, a PEA (a French tax-advantaged equity savings account). This guide covers its fees, its performance and its limits.

Key takeaways

• Annual fees on S&P 500 ETFs range from 0.03% to 0.15%, among the lowest on the market.
• Only synthetically replicated ETFs, such as the Amundi PEA S&P 500, are PEA-eligible.
• The index accounts for around 80% of US stock market capitalisation and close to half of global market capitalisation.
• Since 1992, the S&P 500 has returned around 11% a year in euros, with dividends reinvested.
• Exposure is 100% US and concentrated in tech, with currency risk and a risk of capital loss.

What is an S&P 500 ETF?

An S&P 500 ETF is an ETF, meaning an exchange-traded fund, that tracks the index of the 500 largest US listed companies. Here is what each of those two terms covers.

What is the S&P 500?

The S&P 500, short for Standard & Poor's 500, is a stock market index created in 1957 and based on the 500 largest US companies listed on the stock market. It covers close to 80% of the US market, NYSE and NASDAQ combined, and is regarded as the most representative index of the US stock market, since the Dow Jones Industrial Average holds only 30 companies.

Contrary to popular belief, an index fund is not fixed: its composition changes over the years. According to Goldman Sachs, around a third of the companies in the S&P 500 are replaced over any ten-year period (36% on average since 1980). That gradual turnover keeps the index aligned with the US economy. Here are the 10 largest companies by market capitalisation in 2000 and in 2026:

Industry has therefore almost entirely given way to the tech giants in a little over twenty-five years, and rightly so: betting only on yesterday's largest companies would not have been the best strategy. A large share of the index's performance comes precisely from that turnover, which brings in tomorrow's leaders. Proof that the composition of the index changes.

The S&P 500 is a major stock market index: its capitalisation accounts for close to half of global market capitalisation, at around $67 trillion in summer 2026 (source: slickcharts). By comparison, the CAC 40 accounts for just 2%. Representative of global capitalisation it may be, but the S&P 500 actually covers only 1% of the world's listed companies. On its own it therefore does not provide enough diversification to represent the global market. By investing in a World ETF, you will therefore be heavily exposed to the US stock market.

Over the long term, the S&P 500 has delivered solid performance: around 9% a year excluding dividends in dollars, and around 11% a year in euros with dividends reinvested, over 1992-2026 (source: Curvo). That return ignores inflation, which erodes the real purchasing power of the gains.

An S&P 500 ETF, often written incorrectly as S&P500 ETF, brings those two ideas together: a tracker that follows the 500 largest listed US companies and replicates their performance as closely as possible.

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How do you invest in an S&P 500 ETF?

Investing in an S&P 500 ETF takes four steps: choose a broker, open an account, select the tracker and place the buy order. Each one is set out below.

1. Choose an online broker

To invest in an S&P 500 ETF, you first need to choose an online broker that offers the product. Compare transaction fees, account options and the services each broker provides before deciding.

2. Open a brokerage account

Once you have chosen a broker, you will need to open a brokerage account. That usually means providing personal and financial information, then depositing funds in the account.

3. Select the S&P 500 ETF

Search for the S&P 500 ETF on your broker's trading platform using its ISIN or its ticker (for example SPY5, ISIN IE00B6YX5C33, for the SPDR S&P 500 UCITS ETF). Beware of US-domiciled ETFs such as SPY or VOO: without a Key Information Document compliant with the PRIIPs regulation, they are not available to retail investors resident in France. Check that the fund carries the UCITS label. Make sure you understand the ETF's characteristics and fees before buying.

4. Place a buy order

Place a buy order for the S&P 500 ETF, stating the number of shares you want to buy and the order type (a market order or a limit order, for example). Once the order is filled, the ETF shares are added to your portfolio.

Below is a comparison of the S&P 500 ETFs that dominate the market:

The top ten holdings are identical across all these ETFs, since they track the same index: NVIDIA, Apple, Microsoft, Amazon, Alphabet A, Broadcom, Alphabet C, Meta, Tesla and Micron Technology, or around 40% of assets (source: JustETF profile of the iShares Core S&P 500, as at 29 May 2026). The difference therefore comes down to fees, assets and PEA eligibility.

What are the different types of S&P 500 ETF?

There are a great many S&P 500 ETFs. Several dozen are listed on Euronext, issued mainly by the heavyweights of asset management: iShares (BlackRock), Amundi, Vanguard, BNP Paribas and SPDR (State Street).

What do they have in common? Management fees among the lowest on the market. S&P 500 trackers have traditionally been the cheapest of all, often below 0.2% a year. That makes them a tool of choice for followers of frugality and FIRE.

A tracker's liquidity also matters. It measures how quickly the fund can be traded on the market, which makes selling easier in a market crash or when you need cash.

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What is the risk profile of an S&P 500 ETF?

The main risks of investing in an S&P 500 ETF are those inherent in equities.

The risk of loss is high, since the S&P 500 is a relatively volatile index. An S&P 500 tracker invests in ordinary large-cap shares. Products like this tend to move in cycles, for better and for worse. You need to be ready to sit through a sharp or prolonged fall in equities, sometimes lasting several years.

Which S&P 500 ETFs are eligible for the PEA?

Most so-called “physical” S&P 500 ETFs, which hold the US shares directly, are not PEA-eligible: a fund qualifies only if it invests more than 75% of its assets in securities of companies from the European Union or the European Economic Area. To hold the S&P 500 in a PEA you therefore need an ETF with synthetic replication: the fund holds a basket of European shares and reproduces the US index's performance through a swap. Two trackers currently meet that test, the Amundi PEA S&P 500 (FR0011871128) and the BNP Paribas Easy S&P 500 (FR0011550185); our selection of the best PEA ETFs covers the other indices available in that wrapper. Otherwise, an S&P 500 ETF sits in an ordinary securities account (CTO) or a life insurance policy.

An S&P 500 ETF is not a risk-free investment, quite the opposite. Swings in the US market can feel like a rollercoaster, and both rises and falls can last several years. It is better to use this kind of product within a long-term strategy, which smooths out volatility. The S&P 500 has historically delivered high returns over the long run, but past performance is not a reliable indicator of future performance.

Good to know: The S&P 500 is a widely followed benchmark index for the stock market: on its own it accounts for half of global market capitalisation. French investors tend to stick to their own country and the companies they know, yet the CAC 40 remains a very small index on a global scale. An S&P 500 ETF offers diversification and exposure to the US market and its technology companies, which have historically outperformed the French market over certain periods. These vehicles are inexpensive and easy to use, and they can be held in a PEA where the product is eligible. It remains a risky investment, to be handled with care.

So, should you invest in an S&P 500 ETF?

For anyone looking for simple, low-cost exposure to large US companies over the long term, the S&P 500 ETF is one of the most effective tools available: low fees (often under 0.2% a year), deep liquidity and a solid track record. It does have limits to bear in mind: exposure that is 100% US and heavily concentrated in tech, currency risk for a euro-based investor, and a risk of capital loss, since markets can fall several years in a row.

In short, it makes sense within a long-term strategy, invested regularly, and as a complement to broader diversification (a World ETF, for example) rather than as a sole investment. Whether it fits depends on your investment horizon, your risk tolerance and the rest of your portfolio.

Frequently asked questions

How do you invest in the GAMAM (Google, Apple, Meta, Amazon, Microsoft)?

You can buy shares in each of these companies separately, or invest in an S&P 500 ETF. The ETF gives you fast, low-cost exposure to the five tech giants: Google, Apple, Meta, Amazon and Microsoft. The most widely held S&P 500 ETFs include the iShares Core S&P 500 UCITS, the Vanguard S&P 500 UCITS, the Amundi PEA S&P 500 and the BNP Paribas Easy S&P 500 UCITS.

Where can you hold an S&P 500 ETF?

You can buy an S&P 500 tracker inside an ordinary securities account (CTO), a PEA or a life insurance policy. Under self-directed management, the Finary Life policy (insured by Generali Vie) gives access to a selection of ETFs as unit-linked funds, subject to the range available. Investing in unit-linked funds carries a risk of capital loss.

How is an S&P 500 ETF taxed?

In an ordinary securities account, capital gains and dividends fall under the flat tax (PFU) of 31.4% in 2026, made up of 12.8% income tax and 18.6% of social security levies. In a PEA held for more than five years, gains escape income tax and bear only the social levies on withdrawal.

S&P 500 ETF or World ETF: which should you choose?

An S&P 500 ETF concentrates on US large caps, whereas a World ETF spreads across all developed markets (with around 70% in the United States). The World version offers broader geographic diversification, at slightly higher fees.

What are the fees on an S&P 500 ETF?

S&P 500 ETFs are among the cheapest trackers on the market, with annual management fees (TER) often between 0.03% and 0.15%. On top of that come any brokerage fees and, depending on the wrapper, the fees of the PEA, the CTO or the life insurance policy.

Sources

JustETF, Amundi PEA S&P 500 UCITS ETF Acc profile (FR0011871128): assets, fees and PEA eligibility

JustETF, BNP Paribas Easy S&P 500 UCITS ETF EUR profile (FR0011550185): assets, fees and PEA eligibility

JustETF, Vanguard S&P 500 UCITS ETF profile (IE00B3XXRP09): assets and fees

JustETF, iShares Core S&P 500 UCITS ETF profile (IE00B5BMR087): assets, fees and top ten holdings

JustETF, SPDR S&P 500 UCITS ETF profile (IE00B6YX5C33): assets and fees

AMF, glossary: definition of trackers or ETFs

Service-public.gouv.fr, plan d'épargne en actions (PEA): eligible securities and the 75% threshold

Service-public.gouv.fr, social security levies on investment and capital income: 2026 rates

Curvo, historical performance of the S&P 500 index in euros, 1992 to 2026

Slickcharts, total market capitalisation of the S&P 500

TKer, Goldman Sachs: 36% of S&P 500 constituents are replaced over a ten-year period