The S&P 500 Index entered a bull market on June 8 after rebounding 20% from its October 2022 lows. For investors confident the market will continue its winning streak, these four ETFs offer exposure to one of the U.S. stock market's most closely followed benchmarks.

iShares Core S&P 500 ETF, Vanguard S&P 500 ETF, and SPDR Portfolio S&P 500 are tailored for investors seeking the lowest expense ratios. The SPDR S&P 500 ETF is best for investors and active traders who want the most liquidity.

Investors have been encouraged by falling inflation and the Federal Reserve's decision to pause rate hikes at its June meeting. The 12-month trailing price-earnings ratio of the S&P 500 has fallen by 11% in the past year, making many of these stocks cheaper.

Below we take a closer look at four S&P 500 ETFs. We have excluded leveraged ETFs, which provide outsized returns but come with extra risk. All data below are as of June 14.

S&P 500 ETF With the Lowest Fees: iShares Core S&P 500 ETF (IVV) (Tie)

• Expense Ratio: 0.03%
• Performance Over One-Year: 15.4%
• Annual Dividend Yield: 1.56%
• 30-Day Average Daily Volume: 3,668,396
• Assets Under Management: $326.1 billion
• Inception Date: May 15, 2000
• Issuer: BlackRock Financial Management

S&P 500 ETF With the Lowest Fees: Vanguard S&P 500 ETF (VOO) (Tie)

• Expense Ratio: 0.03%
• Performance Over One-Year: 15.3%
• Annual Dividend Yield: 1.57%
• 30-Day Average Daily Volume: 3,590,357
• Assets Under Management: $312.6 billion
• Inception Date: Sept. 7, 2010
• Issuer: Vanguard

S&P 500 ETF With the Lowest Fees: SPDR Portfolio S&P 500 ETF (SPLG) (Tie)

• Expense Ratio: 0.03%
• Performance Over One-Year: 15.3%
• Annual Dividend Yield: 1.59%
• 30-Day Average Daily Volume: 3,191,321
• Assets Under Management: $18.3 billion
• Inception Date: Nov. 8, 2005
• Issuer: State Street Global Advisors

Most Liquid S&P 500 ETF: SPDR S&P 500 ETF (SPY)

Liquidity indicates how easy it is to buy or sell an ETF, with higher liquidity generally translating to lower trading costs. While trading costs aren't a concern for investors holding ETFs long term, active traders favor highly liquid funds to minimize costs.

• Expense Ratio: 0.0945%
• Performance Over One-Year: 15.3%
• Annual Dividend Yield: 1.60%
• 30-Day Average Daily Volume: 80,884,133
• Assets Under Management: $413 billion
• Inception Date: Jan. 22, 1993
• Issuer: State Street Global Advisors

Why Expense Ratios Matter

Because these ETFs follow the performance of the S&P 500 index, one of the most important determinants of long-term returns is how much a fund charges in fees. An ETF's fees are measured by its expense ratio, which is the percentage of an investor's assets that are kept by the fund manager to maintain the fund.

A fund's expense ratio can significantly impact a long-term investor's total returns. An investor who puts $10,000 in a fund that returns 10% every year will pay $336 in fees to a fund with a 0.5% expense ratio. The same investor would pay $1,682 in fees if they put the same money in a fund with a 2.5% expense ratio.

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As of the date this article was written, the author does not own any of the above ETFs.