Vanguard S&P 500 ETF Remains a Strong Long-Term Investment Despite Market Highs
The Vanguard S&P 500 ETF (VOO) continues to be a compelling investment, even as the index trades NEAR record highs. Historical data shows that 89.5% of professionally managed funds underperformed the S&P 500 over the past decade, reinforcing the wisdom of passive indexing.
Since its inception in 1957, the S&P 500 has delivered approximately 10% annual returns. A $10,000 investment in VOO at its 2010 launch, with dividends reinvested, WOULD now be worth $79,400. The ETF's liquidity advantage over traditional mutual funds makes it particularly attractive for investors seeking market exposure.
While current valuations at 31 times earnings may give pause, the long-term case for dollar-cost averaging into VOO remains intact. Market timing attempts frequently fail, whereas consistent investment in broad market indices has proven its merit across decades.
