Core Insights - Investing in a low-cost ETF, such as the Vanguard S&P 500 ETF, can simplify investment strategies and enhance portfolio growth over time [1][2][12] - The S&P 500 index has historically averaged an annual return of 10%, with a compound annual growth rate of approximately 17% over the past three years [6][7] Investment Strategy - A diversified ETF provides more diversification than individual stock picking, reducing risk associated with single stocks while still benefiting from market growth [3][12] - Mirroring the S&P 500 index can be a safer investment strategy compared to attempting to outperform it, making it suitable for various types of investors [5][7] Fund Characteristics - The Vanguard S&P 500 ETF has an expense ratio of just 0.03%, one of the lowest in the market, ensuring minimal fees do not significantly impact overall returns [10] - The ETF includes exposure to 500 leading companies, with over one-third of its holdings in tech stocks, followed by financials (14%) and consumer discretionary stocks (10%) [11][12] Long-term Outlook - The Vanguard S&P 500 ETF is positioned as a strong long-term investment option, benefiting from the overall growth of the stock market [13]
Not Sure What to Invest In? This Low-Cost ETF Is a No-Brainer Buy
The Motley Foolยท2025-08-23 08:07