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.
For investors seeking momentum, Vanguard S&P 500 ETF VOO is probably on the radar. The fund just hit a 52-week high and is up 35% from its 52-week low of $375.95 per share.
Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard S&P 500 ETF (VOO) is a passively managed exchange traded fund launched on 09/09/2010.
The S&P 500 is near its all-time high, but history tells us it's still a good choice for long-term investors. Before you invest, it's important to understand how the S&P 500 works, especially in terms of how it's weighted.
For nearly half of the 21st century, investors in the S&P 500 and giant ETFs like VOO which track it, saw a lot of volatility, but zero return. That is lost on many investors to do the classic recency effect, which appears to have undervalued the concept of risk management in equity investing. This article dissects VOO and the S&P 500 index, and explains how I am using 25 years of price movements to position for a range of future outcomes.
Vanguard's S&P 500 ETF has been an "AI winner," as top AI stocks are among the fund's biggest holdings. However, the fund has enough non-tech stocks to thrive after the AI party ends. Although the growth of generative AI is a long-term secular trend, the current level of investment in it might require a pullback.
The Vanguard S&P 500 ETF offers a simple and straightforward entry into stock market investing. The ETF provides automatic diversification across various sectors.
VOO up 16% in 2024, with strong gains in the last two months ahead of a bullish seasonal period. S&P 500 dividend yield is near all-time lows with implied correlations at historic lows, but that could change if FX markets are a tell. Optimistic EPS growth is expected for both large and small caps, but I point out that there's the potential for increased volatility starting in August.