Exchange-traded funds (ETFs) can be a fantastic choice for those looking for a low-effort investment that could help you make a lot of money over time. But with countless ETFs to choose from, it can be tough to decide where to invest.

S 500 ETFs track the S&P 500 index itself, so each fund includes stocks from 500 of the largest and strongest companies in the U.S. These companies range from tech behemoths like and Amazon to century-old brands like Procter Gamble and 3M.

While S 500 ETFs have plenty of perks, they're not the right investment for everyone. Here are three reasons you may want to buy this type of ETF, and one good reason to avoid it.

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Source Fool.com