Optimal Diversification
By investing in an S&P 500 ETF, you instantly access 500 leading companies in various sectors, reducing the risks associated with investing in individual stocks.
Everything you need to know about investing in the American index
Complete Guide: How to Invest in the S&P 500 ETF
Why Invest in the S&P 500 ETF?
The S&P 500 ETF is one of the most popular investments to diversify your portfolio and benefit from the growth of the largest American companies. Discover in this comprehensive guide how to effectively invest in this benchmark index.
What is the S&P 500?
The S&P 500 is a stock market index that groups the 500 largest listed companies in the United States. It represents about 80% of the total American market capitalization and includes giants like Apple, Microsoft, Amazon, and Google.
Advantages of the S&P 500 ETF
Attractive Historical Performance
The S&P 500 has historically offered an average annual return of about 12% over the long term, with an exceptional performance of 25% in 2025, including reinvested dividends.
Low Management Fees
S&P 500 ETFs generally have very low management fees, often less than 0.1% per year, allowing you to maximize your returns over the long term.
How to Invest in the S&P 500 ETF?
Via a PEA with Boursorama
The PEA offers a tax-advantaged framework for investing in eligible S&P 500 ETFs. Boursorama offers one of the best PEAs on the market with competitive fees.
Via Trade Republic
Trade Republic offers a modern and intuitive platform for investing in S&P 500 ETFs, with very low brokerage fees.
Via Lynxea Life Insurance
Life insurance allows you to invest in S&P 500 ETFs while benefiting from tax advantages. Lynxea offers high-performance contracts with reduced fees.
The Best S&P 500 ETFs
There are several ETFs that replicate the S&P 500 index. Here are the most popular and best-performing ones.
Vanguard S&P 500 UCITS ETF (VUSA)
The Vanguard ETF is one of the most popular with management fees of only 0.07% per year. It is PEA-eligible and faithfully replicates the index.
Amundi S&P 500 UCITS ETF
The Amundi ETF offers an interesting alternative with management fees of 0.15%. It is also PEA-eligible and has good liquidity.
Risks to Know
Although the S&P 500 ETF is considered a relatively safe long-term investment, it carries certain risks that are important to understand.
Market Risk
The S&P 500 can experience significant declines, such as during the 2008 crisis (-38%) or in 2020 (-34%). It is important to have a long-term investment horizon.
Currency Risk
Investing in the S&P 500 exposes you to EUR/USD exchange rate risk, which can positively or negatively impact performance in euros.
Recommended Investment Strategy
To optimize your investment in the S&P 500, here are the recommended strategies.
Dollar-Cost Averaging (DCA)
Regularly investing the same amount allows you to smooth out the average purchase price and reduce the impact of market volatility.
Long-Term Vision
The S&P 500 has always been positive over 20-year periods. It is recommended to adopt a long-term vision and not give in to emotions during market downturns.
Tax Optimization
Taxation is a crucial aspect of ETF investment. Here's how to optimize your tax situation.
PEA Tax Advantages
The PEA allows for tax exemption on capital gains after 5 years of holding, with only social contributions of 17.2% applying.
Life Insurance Taxation
Life insurance offers advantageous taxation after 8 years, with an annual allowance of €4,600 for a single person.
Conclusion
The S&P 500 ETF represents an excellent option for long-term investment in the American market. Whether via a PEA, a securities account, or life insurance, several options are available to you to start investing today.
Ilane Lopez
Founder / CTO
