What are the top 5 ETFs to buy?

What are the top 10 ETFs on the S&P 500?

&P 500?

The S&P 500 is the most widely followed U. Equity index. It includes 500 of the largest U. Companies based on market capitalization. You can buy and sell shares of the S&P 500 as an exchange-traded fund (ETF) or directly through an investment firm. In fact, the exchange-traded fund market is the fastest-growing segment of the ETF industry, with over 1,500 funds listed in August 2025. The top 10 S&P 500 ETFs, ranked by average daily volume (ADV), include three actively managed ETFs, three index funds, one sector fund, and three index-tracking funds. Companies that make up the S&P 500 Index. FB's top holdings are in technology, energy, communications, industrials, financials, health care, consumer staples, and basic materials. A portion of its assets, up to 15%, may be allocated to small cap stocks.

The performance, risks, and costs associated with an investment in the Fund could differ materially from those experienced by investors in a traditional individual stock investment. It is possible that the Fund may not provide the returns of the S&P 500 Index or other benchmark referenced.

The performance of the Fund may be volatile, and the Fund's share price will fluctuate with changes in economic conditions and company-specific events. Many of the companies in which the Fund invests are subject to economic, political, regulatory and market risks. The Fund is exposed to foreign securities and is subject to foreign, social and economic risks.

An investment in the Fund involves risk and is not suitable for all investors. Some of the Fund's holdings include common stocks of smaller companies. Such common stocks may have relatively high turnover rates and may trade less frequently than large-company securities. Therefore, these stocks may not be as liquid as large-company securities, carry more risk of illiquidity and may fluctuate more in value than the larger companies in which the Fund invests. To understand the risks and additional information about the Fund, please read the prospectus and summary prospectus or call First Trust Company, a part of Fidelity Investments.

How does an ETF make money?

We take a look at the underlying shares behind the iShares DJ-NMS and SPDR X-tracking ETFs

When an exchange traded fund (ETF) pays the market rate for any underlying security, what determines what that rate is? There are two main parts: the amount of shares of the underlying asset available to the market, and how liquid those shares are. An example: If Nifty Futures is priced at an index futures midpoint of 75, that is its value. You can't use the futures contract price to determine the ETF's value unless the market you are using has equal liquidity to Nifty Futures (which is about half the size of the Nifty ETF because it's a daily average). With daily averaging, what price would be used in that example? In other words, what price does the underlying assets get when they trade with less liquidity? The way I looked at this was by looking at the prices of the underlying assets and asking questions like. How do ETFs make money if they don't track anything physical? We have a number of products which track the value of the broad market via various strategies or strategies. The fundamental question is how much of these strategies are in the market right now.

How are we looking at performance? Our performance numbers are based on performance of the fund relative to a benchmark over the previous month. It takes into account volume and liquidity to calculate NAV/Price over monthly rolling periods. We also calculate a performance multiple where the target growth rate represents 5-10% annualised inflation for an economy at the current stage of maturity (and the growth rate was set in February 2019). It looks at how the net assets under management of the ETF changed relative to the NAV over the previous month. All data is sourced from XTF.com.

Do you measure risk? Our performance data covers the period 1 December 2025 - 31 August 2025.45, and the average total market risk premium (RV%) was 8.79.