Why Vanguard S&P 500 ETF Is the Perfect Choice for New Investors

Monday, 15 April 2024, 10:49

Discover why the Vanguard S&P 500 ETF is gaining attention from new investors, offering solid returns, low costs, and broad diversification. With a remarkable track record of over 500% total return since inception, this ETF stands out for its consistent performance and minimal expenses. Learn why experts recommend considering this ETF for long-term financial goals and why waiting for a pullback might not be the most beneficial strategy.
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Why Vanguard S&P 500 ETF Is the Perfect Choice for New Investors

Solid Investment Returns

Solid returns, low costs, and broad diversification are key attributes of this fund. After rising 34% in value since the start of 2023 (as of April 10), the S&P 500 has been in record territory recently. This has probably caught the attention of some people who are considering putting money to work in the stock market to get on track toward their long-term financial goals.

Vanguard S&P 500 ETF Performance

  • The Vanguard S&P 500 ETF has generated a total return, a figure that includes dividends, of 511% since its inception in September 2010.
  • The annualized gain is 14.4%, turning a $1,000 initial cash outlay into more than $6,100 today.
  • The annual expense ratio of just 0.03% allows investors to keep more of their returns.

Considerations for New Investors

Should new investors wait to buy? Even with the ETF near all-time highs, the strategy of dollar-cost averaging could help build valuable savings and investing habits. Despite fears of a recession, history suggests that remaining invested often leads to better results than trying to time the market. The Vanguard S&P 500 ETF remains an attractive option for those starting their investment journey.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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