Latest news with #VanguardS&P500ETF
Yahoo
13 hours ago
- Business
- Yahoo
$1,000 in VOO Could Turn Into $2,100
The Vanguard S&P 500 ETF has more than doubled in the past five years. Its passive approach and broad exposure makes for a hassle-free investment vehicle. While the S&P 500's valuation is historically high, powerful trends should drive stocks higher. 10 stocks we like better than Vanguard S&P 500 ETF › Putting money to work in the stock market is a smart choice for your financial future. Investors who think they need to start that journey with huge sums of capital are mistaken, though. Even investing a relatively small amount of money to start can put you on a path toward building wealth. And there are a lot of ways to gain exposure to large swaths of the market, even with a limited bankroll, thanks to investment vehicles like exchange-traded funds. The Vanguard S&P 500 ETF (NYSEMKT: VOO) is a particularly good choice. An investment of $1,000 in this ETF today could easily grow into a holding worth nearly $2,100 by 2030. The Vanguard S&P 500 ETF passively tracks the S&P 500 index. In other words, it owns a portfolio that includes shares of all of the index's components -- 500 of the largest companies trading on U.S. stock exchanges. The beauty of buying this ETF is that it requires almost no effort on the part of investors. It gives them broad diversification in one easy package. There is no need to spend time poring over financial statements, listening to earnings calls, or trying to pick individual stocks. Investing in those 500 companies as a group is essentially a bet on the development and inventiveness of the American economy. There are lots of active fund managers out there who charge their clients exorbitant fees for their expertise. Even so, the funds managed by most of these professionals underperform the broad market most of the time. In contrast, the fees charged by the Vanguard S&P 500 ETF are extremely low. Investors pay a tiny expense ratio of just 0.03% annually. So more of your money stays your money. Over the past five years, the Vanguard S&P 500 ETF has generated a total return of 106% (as of June 23). This would have turned a $1,000 investment made in late June 2020 into almost $2,100 today. Assuming the same rate of return happens between now and June 2030, investors would end up with the same result, which would be a great outcome. That return was much higher than the historical 10% annualized average of the S&P 500. It's important to remember that the future is hard to predict. Investors should consider both the bear and bull cases for how the Vanguard S&P 500 ETF could perform. The market, and thus the ETF, could certainly produce lower returns over the next five years than it did in the last five. One key argument supporting that bearish view is the market's valuation. One popular metric that investors use to gauge the state of the market is the cyclically adjusted price-to-earnings ratio, aka, the CAPE ratio. As of June 23, it sat at 36.1, well above its trailing 20-year average. In fact, the CAPE ratio has only been higher at the start of this year, during the bull run in 2021, and during the dot-com bubble at the turn of the century. Data shows that there is a strong inverse correlation between the starting CAPE ratio and the S&P 500's returns over the next 20 years. A higher CAPE ratio presages lower stock gains. That suggests some pessimism is warranted. But there are also reasons to be bullish. Powerful trends such as the massive capital inflows into passive investing vehicles like the Vanguard S&P 500 ETF, the rise of dominant tech enterprises, ongoing economic growth, and central banks' accommodative fiscal and monetary policies have all contributed to the S&P 500's ascent. I believe these trends will continue indefinitely. Also, many investors have been concerned about high stock valuations for a decade or more, yet the market has continued to march higher. Therefore, I tend to be on the optimistic side of the fence. I think there is a good chance that the Vanguard S&P 500 ETF's returns throughout the rest of this decade will resemble those of the past five years. Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 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. $1,000 in VOO Could Turn Into $2,100 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
VOO Hits Record High, Joins QQQ in Full Recovery
The S&P 500 surged to all-time highs on Thursday, completing a full rebound from the correction it experienced in March and early April. Midday, the benchmark index traded as high as 6,146.52—slightly above its previous record close of 6,144.15 set on February 19. It also inched closer to its intraday record of 6,147.43 established that same index closed the session at 6,141.02, just a few points short of the all-time highs. With this move, the S&P 500 joins the Nasdaq-100, which hit a new record high of its own earlier this week. The tech-heavy Nasdaq index is tracked by the widely held Invesco QQQ Trust (QQQ), while the S&P 500 is mirrored by some of the largest ETFs in the world, including the Vanguard S&P 500 ETF (VOO), the SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV). Both indexes have now fully shaken off the steep declines sparked by trade war tensions and tariff fears earlier this year. At its lowest point, the S&P 500 had dropped 18.9% on a closing basis and more than 20% intraday—flirting with bear market territory, though it never officially entered one. The index was down as much as 15% year to date as of April 8. Today, it's up more than 5% for the year. As with the Nasdaq-100, the recent gains have been led by a handful of mega-cap tech names. Microsoft Corp. (MSFT), Nvidia Corp. (NVDA) and Broadcom Inc. (AVGO) have all hit record highs in recent days, helping drive the rebound. However, the rally hasn't been evenly distributed. The Invesco S&P 500 Equal Weight ETF (RSP), which assigns the same weight to each of the index's constituents, is still 4% below its peak and up only 3.6% year to date. Unlike the traditional S&P 500, RSP is far less influenced by the performance of the largest stocks. Meanwhile, not all tech giants are sharing in the gains. Apple Inc. (AAPL), currently the third-largest U.S. company by market cap, remains 23% below its highs amid concerns over its exposure to China and growing investor anxiety that it's falling behind in the AI race. Tesla Inc. (TSLA) is down even more—32% off its December highs—as the company grapples with a rocky rollout of its robotaxi initiative in Austin this | © Copyright 2025 All rights reserved
Yahoo
3 days ago
- Business
- Yahoo
$5.1B Flows to IVV; Gold and International ETFs Grow Assets
The iShares Core S&P 500 ETF (IVV), the third-largest ETF by assets under management, added a $5.1 billion to its already enormous asset base on Monday, according to FactSet data. Contrasting that inflow was a $4.6 billion outflow from the largest ETF, the Vanguard S&P 500 ETF (VOO). International funds grabbed investor attention, as the Vanguard FTSE Developed Markets ETF (VEA), the Vanguard Total International Stock ETF (VXUS) and the Vanguard FTSE All-World ex-US Index Fund (VEU) all placed on the top 10 creations list with large inflows yesterday. Precious metals ETFs also saw action, with $775.9 million flowing into the SPDR Gold Shares (GLD) ETF and 233.2 million of flows heading into the iShares Silver Trust (SLV). On the outflows side, the VanEck Morningstar Wide Moat ETF (MOAT) saw $1.3 billion in redemptions, the Vanguard Mid-Cap ETF (VO) lost $1.1 billion in assets and the VanEck Semiconductor ETF (SMH) waved goodbye to $884.9 million on the day. Overall, U.S. equity ETF assets fell by $8.1 billion and U.S. fixed-income ETFs added $743.4 million, while international equity ETFs gained $1.2 billion and international fixed-income ETF assets ticked up by $129.8 million. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change IVV iShares Core S&P 500 ETF 5,106.44 578,819.41 0.88% VEA Vanguard FTSE Developed Markets ETF 1,401.99 157,954.62 0.89% GLD SPDR Gold Shares 775.88 103,657.23 0.75% VXUS Vanguard Total International Stock ETF 485.74 91,957.11 0.53% VWO Vanguard FTSE Emerging Markets ETF 484.40 87,409.62 0.55% VGK Vanguard FTSE Europe ETF 314.16 25,126.95 1.25% VEU Vanguard FTSE All-World ex-US Index Fund 291.56 44,255.64 0.66% IWB iShares Russell 1000 ETF 261.40 40,125.24 0.65% USO United States Oil Fund LP 257.32 1,371.56 18.76% SLV iShares Silver Trust 233.16 17,364.15 1.34% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change VOO Vanguard S&P 500 ETF -4,597.35 675,895.81 -0.68% MOAT VanEck Morningstar Wide Moat ETF -1,319.51 12,369.88 -10.67% VO Vanguard Mid-Cap ETF -1,083.75 83,454.34 -1.30% SMH VanEck Semiconductor ETF -884.88 24,175.92 -3.66% DGRO iShares Core Dividend Growth ETF -678.86 31,121.81 -2.18% VTI Vanguard Total Stock Market ETF -672.29 481,783.94 -0.14% IWM iShares Russell 2000 ETF -638.20 61,821.29 -1.03% VUG Vanguard Growth ETF -573.01 168,183.13 -0.34% GCOW Pacer Global Cash Cows Dividend ETF -471.26 2,297.85 -20.51% VYM Vanguard High Dividend Yield Index ETF -405.22 59,319.16 -0.68% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 7.47 10,030.09 0.07% Asset Allocation 28.77 24,185.44 0.12% Commodities ETFs 1,294.22 223,460.47 0.58% Currency 51.82 142,850.38 0.04% International Equity 1,188.32 1,809,674.33 0.07% International Fixed Income 129.80 299,165.67 0.04% Inverse 29.10 14,748.59 0.20% Leveraged -121.39 125,213.65 -0.10% US Equity -8,065.77 6,879,541.48 -0.12% US Fixed Income 743.42 1,678,133.68 0.04% Total: -4,714.24 11,207,003.77 -0.04% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Business
- Yahoo
5 Simple ETFs to Buy With $500 and Hold for a Lifetime
The Vanguard S&P 500 is a great core holding. For investors looking for more growth and technology stock exposure, the Vanguard Growth ETF, Invesco QQQ Trust, and Vanguard Information Technology ETFs are great options. For investors looking for income, the Schwab U.S. Dividend Equity ETF is a great choice. 10 stocks we like better than Vanguard S&P 500 ETF › One of the best ways for both new and experienced investors to invest is through exchange-traded funds (ETFs). These funds provide instant diversification and don't require you to pour a ton of time into research. ETFs are also one of the best ways to implement a dollar-cost averaging strategy. This is a strategy where you would buy a set amount of shares of an ETF on a regular, consistent basis, regardless of its current performance. It's a proven strategy that can help you build wealth over time. So while $500 is a good starting point to invest, the key is to consistently add to that amount over time. Let's look a five simple ETFs that are perfect for implementing this strategy. The Vanguard S&P 500 ETF (NYSEMKT: VOO) is one of the most popular ETFs on the market, and for good reason. It tracks the performance of the S&P 500 index, which consists of around 500 of the largest U.S. companies based on market capitalization. It is a market-cap-weighted index, which means that the larger the company, the greater the percentage it is of the index. The S&P is widely considered the benchmark of the U.S. stock market, and the Vanguard S&P 500 ETF replicates the index's performance at a very low cost. Its expense ratio is a scant 0.03%, which means on a $500 investment, the annual fee is only $0.15. Most importantly, the Vanguard ETF gives investors solid diversification across sectors and has a strong track record. Over the past decade, it's averaged a 12.8% average annual return, as of the end of May. Staying within the low-cost Vanguard family, the Vanguard S&P Growth ETF (NYSEMKT: VUG) is another great option. The ETF tracks the performance of the CRSP US Large Cap Growth Index, which is essentially the growth side of the S&P 500. Growth stocks have been leading the market for more than the past decade, so the ETF is a great way to tap into this trend, with the stocks in the index growing their earnings at an average annual rate of 27.5%. The ETF has been a strong performer, generating an average annual return of 15.3% over the past decade, as of the end of May. The index leans toward technology stocks, with the sector making up 58.5% of its holdings. It also has a very low expense ratio of 0.04%. While its expense ratio of 0.2% is higher than those of the Vanguard ETFs, not many non-sector-specific funds can match the performance of the Invesco QQQ Trust (NASDAQ: QQQ). The ETF has produced an average annual return of 18.1% over the past 10 years, as of the end of May. The ETF replicates the performance of the Nasdaq-100 index, which consists of about the 100 largest non-financial stocks that trade on the Nasdaq exchange. Like the Vanguard S&P Growth ETF, the Invesco QQQ Trust is highly geared toward growth and tech stocks, although the weighting of its top 10 holdings is actually a bit more spread out. The ETF has not only been a great performer over the years, but it's been a consistent one. Over the past decade, it's outperformed the S&P 500 more than 87% of the time on a rolling 12-month basis. That's impressive. For investors looking for even more technology exposure, the Vanguard Information Technology ETF (NYSEMKT: VGT) is a great option. Technology, such as artificial intelligence (AI), is changing the world we live in, and large-cap technology companies are the ones benefiting the most. As a result, many have grown to become some of the largest companies in the world. The Vanguard Information Technology ETF is a great way to invest in the sector, and its performance has been nothing short of spectacular. The ETF has generated an average annual return of 19.8% over the past decade, as of the end of May. That said, the ETF, which tracks the MSCI US Investable Market Information Technology 25/50 Index, is very top-heavy, with its top three holdings of Nvidia, Microsoft, and Apple representing around 45% of its holdings. For investors looking for something with less technology exposure, the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is a solid option. The ETF looks to replicate the performance of the Dow Jones U.S. Dividend 100 Index, which is made up of high-yielding U.S. stocks that have a strong track record of consistently paying dividends. As a result, the ETF has a yield of nearly 4%, making it a great investment for investors looking for income. The ETF has been a solid performer, with an average annual return of 10.6% over the past 10 years, as of the end of May. While that trails other ETFs on this list, it has nicely outperformed other large-cap value ETFs during this period. It also has a low expense ratio of just 0.06%. Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Geoffrey Seiler has positions in Invesco QQQ Trust and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 5 Simple ETFs to Buy With $500 and Hold for a Lifetime was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
IVV Tops Inflows With $1B Haul, QQQ Gains $793M
The $574.9 billion iShares Core S&P 500 ETF (IVV), the world's third-largest exchange-traded fund, pulled in $1 billion Friday to lead all inflows. Investors appeared to display confidence in mainstream index investing, adding $793.5 million to the Invesco QQQ Trust (QQQ), a $338.2 billion fund that tracks 100 stocks in the tech-heavy Nasdaq-100 index. The world's largest ETF, the $682 billion Vanguard S&P 500 ETF (VOO), pulled in a net $571.9 million. A pair of dividend ETFs managed by top-10 issuer First Trust had large net outflows in what may have been so-called "heartbeat" trades. They pulled $1.5 billion from the $14.5 billion First Trust Rising Dividend Achievers ETF (RDVY) two days after the same amount was put in. The $5.4 billion First Trust Morningstar Dividend Leaders Index Fund (FDL) had a net $1.3 billion withdrawn; a similar amount was put in only days earlier. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change IVV iShares Core S&P 500 ETF 1,047.40 574,933.83 0.18% QQQ Invesco QQQ Trust Series I 793.48 338,232.37 0.23% VOO Vanguard S&P 500 ETF 571.87 681,945.88 0.08% JAAA Janus Detroit Street Trust Janus Henderson AAA CLO ETF 562.33 21,697.68 2.59% GCOW Pacer Global Cash Cows Dividend ETF 473.39 2,781.62 17.02% GLD SPDR Gold Shares 312.50 103,594.08 0.30% IBIT iShares Bitcoin Trust ETF 278.93 71,058.52 0.39% JPLD JPMorgan Limited Duration Bond ETF 275.84 1,479.44 18.64% AGG iShares Core U.S. Aggregate Bond ETF 196.20 127,017.03 0.15% JPST JPMorgan Ultra-Short Income ETF 186.96 31,775.79 0.59% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change RDVY First Trust Rising Dividend Achievers ETF -1,468.29 14,458.38 -10.16% FDL First Trust Morningstar Dividend Leaders Index Fund -1,323.35 5,413.12 -24.45% VO Vanguard Mid-Cap ETF -1,093.49 84,352.12 -1.30% VTI Vanguard Total Stock Market ETF -1,002.89 483,458.95 -0.21% FJUN FT Vest U.S. Equity Buffer ETF - June -868.79 956.72 -90.81% SDVY First Trust SMID Cap Rising Dividend Achievers ETF -606.77 7,932.72 -7.65% QJUN FT Vest Nasdaq-100 Buffer ETF - June -575.55 571.21 -100.76% VB Vanguard Small-Cap ETF -566.35 62,804.82 -0.90% TLT iShares 20+ Year Treasury Bond ETF -554.25 48,583.75 -1.14% DIA SPDR Dow Jones Industrial Average ETF Trust -486.20 36,694.56 -1.32% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives -2.95 10,042.53 -0.03% Asset Allocation 19.28 24,186.91 0.08% Commodities ETFs 376.17 224,050.77 0.17% Currency 428.52 143,826.12 0.30% International Equity 1,469.51 1,819,426.26 0.08% International Fixed Income 993.50 298,984.60 0.33% Inverse -89.46 14,682.36 -0.61% Leveraged -171.93 124,229.93 -0.14% US Equity -6,547.11 6,895,860.76 -0.09% US Fixed Income 1,068.90 1,676,778.30 0.06% Total: -2,455.57 11,232,068.54 -0.02% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved
