Passive Equity Investment Replication Methods

Jane is a portfolio manager at a large institutional investment firm and is considering a passive equity investment strategy focused on the replication of the S&P 500 Index. She is analyzing various replication methods to determine the most efficient way to achieve the investment objective with minimal tracking error. Jane knows that different replication strategies can affect the overall performance, costs, and risks associated with the portfolio.

Which of the following replication methods would likely provide Jane with the closest tracking to the S&P 500 while minimizing costs and operational complexities?