ETF Beginner's Guide — S&P 500 vs Nasdaq ETF Fees and Returns Compared (2026)

What is an ETF? How is it different from a stock? An ETF (Exchange Traded Fund) is a fund you can buy and sell on an exchange in real time, just like a stock. When you buy one share of an S&P 500 ETF, you effectively get diversified exposure to all 500 large-cap companies in the index, including Apple, Microsoft, Nvidia, and many others. | Category | Individual Stock | ETF |

S&P 500 ETFs — The Safest Way to Invest in U.S. Stocks The S&P 500 is an index of the 500 largest U.S. companies. Since 1957, it has generated an average annual return of about 10.5%, which is why it is often treated as the benchmark for long-term stock investing.

Comparing the Major S&P 500 ETFs | ETF | Issuer | Annual Fee (TER) | Assets Under Management | Notes |

Nasdaq ETFs — Concentrated Bets on Tech The Nasdaq-100 consists of 100 large-cap, tech-heavy companies, including Apple, Microsoft, Nvidia, Amazon, Google, and others. Compared with the S&P 500, it tends to be more volatile, but it has also delivered higher historical returns.

Comparing the Major Nasdaq ETFs | ETF | Issuer | Annual Fee | 10-Year Average Annual Return |

S&P 500 vs Nasdaq — Which Should You Pick? | Criterion | S&P 500 ETF | Nasdaq ETF |

ETF Investment Return Simulation If you invest 300,000 KRW per month in an S&P 500 ETF and assume a 10% annual return: | Period | Total Contributions | Estimated Balance |

Things to Watch Out for When Investing in ETFs 1. Currency risk: Overseas ETFs trade in U.S. dollars, so KRW/USD exchange rate movements can affect your returns.

1. 1Fee comparison: Over 30 years, the difference between a 0.03% and a 0.5% expense ratio can add up to tens of millions of KRW.
2. 2Taxes: Korea-listed ETFs are subject to a 15.4% dividend income tax, while direct investments in overseas ETFs are subject to a 22% capital gains tax.
3. 3Use ISA and pension accounts: Holding ETFs inside an ISA (Individual Savings Account) or a pension savings account can provide meaningful tax benefits. ---

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FAQ

Q1. What is the difference between an ETF and a mutual fund?

A. A traditional mutual fund trades only once a day at its NAV, while an ETF can be bought and sold throughout the trading day, just like a stock. ETFs also usually have much lower management fees.

Q2. Is investing in an S&P 500 ETF safe?

A. In the short term, drawdowns of 20–30% are entirely possible. Over a holding period of 10 years or more, however, the probability of a loss becomes very small — historically, the chance of losing money over any 10-year holding period has been below 5%.

Q3. When is the best time to buy a Nasdaq ETF?

A. Instead of trying to time the market, investing a fixed amount on a regular schedule (systematic investing) has historically produced better long-term results. This approach is known as Dollar-Cost Averaging (DCA).

Q4. Are Korean-listed ETFs or overseas ETFs better?

A. From a tax angle: Korea-listed ETFs are subject to a 15.4% dividend income tax, while overseas ETFs are taxed at 22% on capital gains beyond a 2.5 million KRW deduction. From a convenience angle: Korea-listed ETFs are easier to trade in KRW. Holding Korean ETFs inside an ISA account can also provide tax benefits.

Q5. What is the minimum investment amount for an ETF?

A. You can start with the price of a single share. VOO trades at about $540 (around 720,000 KRW), while domestic options like TIGER S&P500 can be bought for as little as around 10,000 KRW per share.

Q6. How do I receive ETF dividends?

A. S&P 500 and Nasdaq ETFs distribute dividends quarterly or annually. They are deposited automatically in KRW into your Korean brokerage account. If you set up a Dividend Reinvestment Plan (DRIP), the dividends can also be automatically reinvested into additional shares.