If You'd Invested $1,000 in the Vanguard S&P 500 ETF 10 Years Ago, Here's What You'd Have Today
If investors want to own the S&P 500 index, it’s hard to find a better choice than the Vanguard S&P 500 ETF (VOO +0.61%). The low expense ratio of just 0.03% means investors keep more of their hard-earned savings over time.
And the gains have been impressive. If you’d invested $1,000 in this exchange-traded fund (ETF) exactly 10 years ago, here’s how much you’d have today.
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A $1,000 starting sum of money would be worth more than $4,200 today. This equates to a 322% total return (as of Aug. 5). On an annualized basis, the total return of 15.4% is exceptional. It’s significantly higher than this ETF’s historical average of 10%.
It probably doesn’t come as a surprise that this stellar performance has been driven by the success of the world’s dominant technology companies. The sector as a whole represents a sizable 38% share of the ETF. Consequently, investors gain heavy exposure to artificial intelligence stocks.
Vanguard S&P 500 ETF
Today’s Change
(0.61%) $4.31
Current Price
$710.71
Key Data Points
AUM
$1.7T
Dividend Yield
1.03%
Expense Ratio
0.03%
Top Holdings
NVDA
7.51%
AAPL
6.59%
MSFT
4.30%
The attention today rests fully on the market’s valuation. The bears will point to the prospects of poor returns going forward, which is a valid concern.
However, this shouldn’t discourage investors from putting money to work. The stock market rewards those with the patience and discipline to think and act like long-term business owners. This mindset has historically paid off.
Neil Patel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.