The S&P 500 provides exposure to 500 large and profitable American businesses. Investing near record highs is still a smart move for those with a long time horizon.
The Vanguard S&P 500 ETF has been a long-term winner over the years. The ETF offers instant diversification with a tiny expense ratio.
An investment in the S&P 500 can be seen as an investment in the U.S. economy. Vanguard's ETF has averaged a 14.4% total return since its September 2010 inception.
Putting money into ETFs that follow broad indexes can be a solid passive investment strategy. Small percentage differences in annual performance can lead to large differences in returns over time.
A low-fee S&P 500 index fund is perfect for beginning investors, helping them own most of the U.S. stock market. It's perfectly good for other investors, too, as it outperforms its actively managed counterparts.
Buying shares of exchange-traded funds is a great way for novice investors to grow their assets. The Vanguard S&P 500 ETF tracks the benchmark U.S. large-cap index, meaning it will never underperform the stock market.
The S&P 500 is on a tear this year, with a gain of 18% already. The index has consistently delivered positive annual returns (on average) since its inception in 1957, so it's not too late for investors to buy.
The weak CPI surprised market observers and caused concern about U.S. economic growth. Powell's comments about two-sided risks will continue to weigh on investors' minds.
Previously, I was concerned about Vanguard S&P 500 ETF's valuation risks, judging by the extremely thin excess CAPE Yield, or ECY. The new CPI data shows inflation is easing and provides further support for Fed to cut interest rates. Thus, the real interest rates are very likely to decline, widen the ECY, and brighten the return potential for the VOO ETF.
Warren Buffett has regularly recommended an S&P 500 index fund as the best way for most investors to get stock market exposure. The S&P 500 advanced 2,090% over the last three decades, returning 10.8% annually, and similar results are likely in future decades.
The Vanguard S&P 500 ETF is essentially a bet on the growth and ingenuity of the American economy. Returns have been fantastic since the ETF's inception in 2010.
The Vanguard High Dividend Yield Index Fund ETF is a low-cost fund designed for income-seeking investors. The Vanguard S&P 500 ETF has a rock-bottom expense ratio, so investors keep more of their returns.