Latest news with #VanguardS&P500ETF
Yahoo
16 hours ago
- Business
- Yahoo
Vanguard Dividing Fund Lineups Between Two Teams
The Vanguard Group is dividing its multi-trillion dollar lineup of ETFs and mutual funds—which includes the world's largest ETF, the Vanguard S&P 500 ETF (VOO)—between a pair of investment advisor teams for the first time, as asset managers encounter an investing landscape reshaped by technology and the demand for fresh products. Vanguard, the world's second-largest asset manager with $10 trillion across a range of funds, is creating a pair of teams called Vanguard Capital Management and Vanguard Portfolio Management, according to a statement. Both had previously been under a single entity, The Vanguard Group. As Vanguard turns 50 years old, asset managers are confronting challenges, including surging demand for exchange-traded funds, slowing mutual fund inflows, active fund growth, and surging investor interest in cryptocurrency and technologies like blockchain that may replace physical assets in some cases. Vanguard, the No. 2 ETF issuer behind BlackRock's iShares, has also come under criticism for a failure to improve aspects of its customer service. 'Their mammoth size now requires more focus than a single team could handle,' Daniel Sotiroff, CFA, Morningstar Direct senior manager research analyst, wrote in a note. Vanguard manages both the world's largest ETF, the $681.6 billion VOO, and mutual fund, the $1.8 trillion Vanguard Total Stock Market Index Fund (VTSAX). The sheer size of the Malvern, Pennsylvania-based company's holdings is creating other problems, Sotiroff noted. Vanguard owns big stakes in most publicly traded stocks and, with some of those stakes exceeding regulatory limits, the company may have to cap ownership of some stocks, he wrote. 'They may not track their target index as accurately as they had in the past,' Sotiroff wrote. 'Likewise, it may restrict an active manager's ability to express their best ideas.' Vanguard Top 5 ETFs—Source: FactSet Vanguard Capital Management will include fixed income led by Sara Devereux, and global equity index management led by Rodney Comegys. Vanguard Portfolio Management will include Quantitative Equity Group, and will also lead Strategic Equity Index Management led by John Ameriks. They will report to Vanguard President and Chief Investment Officer Greg Davis. Vanguard, with $3.3 trillion in 92 exchange-traded funds, said the changes take effect next year. Note: Second-to-last paragraph recast to better reflect groups' structures. Permalink | © Copyright 2025 All rights reserved 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
17 hours ago
- Business
- Yahoo
VOO Is a Great Choice for Most, but I Like RSP ETF Better
The Vanguard S&P 500 ETF tracks the performance of the most popular stock market benchmark. It has minimal expenses and has historically been a great way to build wealth over long periods. The S&P 500 has become a little top-heavy, so I prefer an equal-weight approach. 10 stocks we like better than Invesco S&P 500 Equal Weight ETF › The Vanguard S&P 500 ETF (NYSEMKT: VOO), also known by its ticker symbol VOO, is one of the most popular funds in the world. Including Vanguard's mutual fund version of the same index fund, investors have $1.4 trillion in assets invested in it. As the name suggests, this is an index fund that tracks the benchmark S&P 500 (SNPINDEX: ^GSPC) over time. In other words, if the S&P 500 produces a 20% total return for investors over the next two years, this ETF should do the same, net of fees. Speaking of fees, as a Vanguard ETF, the investment expenses of this index fund are extremely low. It has an expense ratio of just 0.03%, which means that for every $1,000 in assets, your annual investment cost will be just $0.30, which will be reflected in the fund's performance over time. The Vanguard S&P 500 ETF is generally thought of as an excellent "core" investment for a stock portfolio. And in full disclosure, I own shares of it in my own retirement portfolio. But if I were to put new money to work today, I may choose to go in a slightly different direction and buy shares of a similar ETF that has one big difference. To be clear, the Vanguard S&P 500 ETF is a great index fund. If you're simply looking for a low-cost way to match the stock market's performance over time, it could be an excellent addition to your portfolio. My biggest issue with investing in the S&P 500 is that it has become rather top-heavy in recent years. With the emergence of trillion-dollar tech companies, the S&P 500 is weighted so that well over one-third of its performance is derived from the 10 largest components. In a nutshell, an S&P 500 index fund has increasingly become a bet on the largest few dozen U.S. companies, and has become less of a broad, diversified way of getting stock market exposure. If I were putting new money to work today, I would take a closer look at the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP). It invests in the same 500 companies you'll find in the portfolio of the Vanguard S&P 500 ETF, but with one key difference. Instead of allocating assets based on the size of each component, it invests an equal amount in all 500 companies. Of course, there are day-to-day fluctuations, but there's about 0.2% of the fund's assets invested at any given time. This means that smaller components of the S&P 500 like Dollar General carry the same weight as megacaps like Microsoft. The equal-weight fund does have a somewhat higher 0.20% expense ratio, but this is still on the lower end for a unique ETF. As mentioned, there's absolutely nothing wrong with a traditional S&P 500 index fund. But if you're not too much of a fan of having your investment's performance largely dependent on just a few companies, this equal-weight counterpart could be worth a closer look. Before you buy stock in Invesco S&P 500 Equal Weight ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco S&P 500 Equal Weight 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 $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — 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 9, 2025 Matt Frankel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Microsoft 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. VOO Is a Great Choice for Most, but I Like RSP ETF Better was originally published by The Motley Fool
Yahoo
3 days ago
- Business
- Yahoo
The Stocks That Could Make Your Grandkids Rich as Kings
One of the best ways to amass great wealth is to invest for a very long time. Young people are the ones with the most time. Get your young loved ones started investing as soon as they're able. 10 stocks we like better than Vanguard S&P 500 ETF › We publish a lot of articles on how you might become a millionaire -- and it's true, you could become a millionaire. But young people can aim much higher than that: They could become multimillionaires, because they have a lot more time in which their money can grow for them. Here's a look at a handful of investments that have a lot of room to grow over the coming decades. See if you want to recommend any to your kids or grandkids. It's rarely too early to get your kids investing and on the path to smart money management. First, though, here's a review of how money grows, because it's important to understand what's possible: Growing at 8% for $6,000 invested annually $12,000 invested annually 5 years $38,016 $76,032 10 years $93,873 $187,746 15 years $175,946 $351,892 20 years $296,538 $593,076 25 years $473,726 $947,452 30 years $734,075 $1,468,150 35 years $1,116,613 $2,233,226 40 years $1,678,686 $3,357,372 50 years $3,718,030 $7,436,061 Calculations by author via See? Multimillionaire status is possible! It does take time, though. If your kid or grandkid is, say, 10, they have 50 years until they turn 60, which is a somewhat early age at which they might retire. For compounding to do amazing work, you need three things: time, meaningful investments, and a good growth rate. Simply investing in the S&P 500 can be all you need. Over many decades, it has averaged annual returns close to 10%. I've been a little more conservative in the table above because 10% average returns are not guaranteed. Here, then, are some investments to consider. I'm focusing on exchange-traded funds (ETFs) here, because they're very much stock-like, while also being funds. They trade like stocks, but each of these is invested in an array of companies, offering instant diversification. A low-fee S&P 500 index fund is hard to beat, and even Warren Buffett has recommended it for most people. It will immediately have you invested in 500 of America's biggest companies -- including all of the "Magnificent Seven" -- which are Apple, Amazon, Google parent Alphabet, Facebook parent Meta Platforms, Microsoft, Nvidia, and Tesla. You might cast an even wider net by investing in an index fund that aims to deliver the performance of the total U.S. stock market, or one that tracks the total world stock market. Here are three solid broad-market index funds to consider: Vanguard S&P 500 ETF (NYSEMKT: VOO) Vanguard Total Stock Market ETF (NYSEMKT: VTI) Vanguard Total World Stock ETF (NYSEMKT: VT) The Vanguard S&P 500 ETF has averaged annual gains of about 13% over the past decade, and 16.2% over the past five years. If you want to aim for a little faster growth, consider the Vanguard Growth ETF (NYSEMKT: VUG). It tracks the CRSP U.S. Large Cap Growth Index, which is focused on faster-growing large companies. It recently held 166 stocks, with about half of them in the technology sector and close to 27% divided between the consumer cyclical and communication services sectors. Over the past decade, this ETF has averaged annual gains of 15.5% -- and 17.3% over the past five years. To aim for even fatter returns (while accepting more risk), consider one or two ETFs such as the Technology Select Sector SPDR ETF (NYSEMKT: XLK). It recently held 69 stocks, involved in businesses such as semiconductor equipment, internet software and services, IT consulting services, computers, and peripherals. Over the past decade, this ETF has averaged annual gains of 20.3%, and 20.2% over the past five years. Note, though, that when market downturns happen, as they occasionally do, high-flying growth stocks such as those in ETFs such as these may drop sharply in value -- often recovering eventually. As you aim to help your grandkids (or kids) become multimillionaires, here are some things to keep in mind: Whether you're buying into one of these ETFs or some stocks, buy to hold. That means you keep an eye on the investments, in case some situation develops where selling might be smart. With these broad funds, though, holding for decades is more likely to be safe and effective. Note, too, that the amount invested every year matters a lot. Young people may only manage, say, $100 or $500 per month. But as they grow and enter the workforce, it's important to keep investing and to invest more each year, as they're able. Their earliest invested dollars are the most powerful, as they have the most time in which to grow. They may need to take some of this money out for school or a down payment, but it's good to keep as much as they can growing for their far-off futures. It's also vital to keep inflation in mind. We might think that retiring with $2 million can put us on easy street, but in 50 years, that sum might have the purchasing power of only $400,000 or so. Thus, for best results, young people should aim to invest aggressively. At some point, perhaps as they approach and enter middle age, they may find that their portfolios have grown enough to fund a comfortable retirement. At that point they might just retire, or keep saving and investing, but with a little less urgency. So do your young loved ones a favor, and give them a nudge in the direction of financial independence. 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 $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 173% 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 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Selena Maranjian has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Vanguard Total Stock Market 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. The Stocks That Could Make Your Grandkids Rich as Kings was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Warren Buffett Says to Buy This Vanguard ETF. It Could Turn $1,000 Per Month Into $245,000 in 10 Years.
Warren Buffett believes most investors should choose a low-cost index fund. Patience, consistency, and discipline could turn relatively small, regular investments into a hefty portfolio balance over time. Besides strong performance, investors should consider the time commitment required, as well as the expense ratio. 10 stocks we like better than Vanguard S&P 500 ETF › Top fund managers consistently select individual stocks to build high-performing portfolios. While individual investors often believe they can do the same, and some actually might, the vast majority of people aren't as skilled at stock selection. Here's where the recommendation of Warren Buffett comes into play. The Oracle of Omaha suggests the right course of action for most people is to simply invest their money in a low-cost index fund, particularly one that tracks the performance of the broad market S&P 500 index. One exchange-traded fund (ETF) of this type that comes to mind is the Vanguard S&P 500 ETF (NYSEMKT: VOO). Investors who choose this path and follow it consistently put themselves in a position to be rewarded over time. For example, investing just $1,000 per month in this ETF could result in a portfolio balance of $245,000 in 10 years. Here's what you need to know. In the past decade, the Vanguard S&P 500 ETF has produced a total return of 244%, with dividends reinvested. That's a fantastic outcome, likely buoyed by huge capital inflows into passive investment options over active strategies, generally solid economic growth, and the rise of several dominant tech enterprises. That trailing 10-year gain puts its compound annual growth rate at about 13% -- well ahead of the market's long-run average of 10% annually. For the sake of this article, let's assume that the next 10 years will resemble the last decade when it comes to returns. Of course, nothing is guaranteed, and the future is inherently unpredictable. But if you invest $1,000 per month between now and 2035 (for a total of 120 investments), you'd have around $245,000 in a decade. This is the power of dollar-cost averaging. You might think that to succeed as an investor, you have to make decisions like a pro and try to correctly time the market. The intention of buying low, selling high, and repeating the process sounds good in theory. However, it's virtually impossible to do well on a consistent basis. That's why a dollar-cost averaging approach makes the most sense: If you add more money to your portfolio consistently at regular intervals, you can be assured that you're taking advantage of the inevitable ups and downs of the market. Knowing that $1,000 per month can end up becoming $245,000 should be enough to get any investor excited about putting money to work in the stock market. There are other clear benefits to adopting this no-brainer strategy. For one, there's a strong chance the portfolio will beat a majority of the experts. Data shows that the performances of most actively managed funds lag the S&P 500 over long stretches of time. This doesn't prevent fund managers from charging high fees that further eat away at the returns of their investors. The Vanguard S&P 500 ETF, on the other hand, has an expense ratio of just 0.03%. That's a charge of $3 a year for every $10,000 a person has invested in the fund. That's hard to beat. Another benefit is that this is a hassle-free approach. Investors don't need fancy degrees or certifications, expert financial analysis skills, or hours of free time every week to listen to earnings calls. Putting money into the Vanguard S&P 500 ETF on a monthly basis is essentially an automatic investment allocation. It couldn't be simpler. It instantly provides investors with broad diversification into 500 of the largest U.S. companies. The ETF has exposure to all sectors, from technology and financial services businesses to energy and utilities. It's a bet on the growth of the American economy and on the premise that it will continue doing what it has always done. This seems like a smart bet to make. Buying $1,000 worth of the Vanguard S&P 500 ETF every month should put you on the path to building your wealth in the next decade and beyond. 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — 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 9, 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. Warren Buffett Says to Buy This Vanguard ETF. It Could Turn $1,000 Per Month Into $245,000 in 10 Years. was originally published by The Motley Fool
Yahoo
13-06-2025
- Business
- Yahoo
From Panic to Peak: Markets Nearly Erase Trade War Losses
Just two months ago, the stock market was reeling. The S&P 500 had plunged nearly 20% from its highs, rattled by an escalating global trade war. The Nasdaq-100 fared even worse, falling more than 22%. Bear-market talk was everywhere. Today, investors are scanning the horizon—not for more pain, but for fresh all-time highs. The Vanguard S&P 500 ETF (VOO) is now less than 2% below its record high, while the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, is down just 1% from its peak. It's a stunning turnaround few would've predicted back in April, when markets hit their low point amid fears that President Donald Trump's sweeping tariffs—slapped on trading partners including Canada, Mexico and, eventually, the rest of the world—would tip the U.S. economy into recession and stoke inflation. On April 8, the S&P 500 briefly fell into bear market territory on an intraday basis, dropping 20% from its February highs before closing the day down 18.9%. The Nasdaq officially crossed into bear territory, falling more than 22% from its highs. But the mood began to shift in May. President Trump announced a pause in the trade war, pulling back on the so-called "Liberation Day" tariffs and dialing down the severity of the duties. Markets responded immediately. At the same time, incoming economic data calmed investor nerves. Growth remained resilient, and inflation—far from surging—continued to drift lower. That rare combination of solid growth and cooling prices was just the recipe markets needed to rally. VOO, QQQ and other broad index-tracking ETFs have been leading the charge higher ever since, helped along by tech sector strength, earnings optimism and relief that the worst-case trade war fears didn't materialize. The S&P 500 last hit an all-time high on February 19, buoyed by optimism over Trump's deregulatory and pro-business agenda. While that optimism was quickly overshadowed by trade tensions, investors are now revisiting the bullish case. Markets haven't yet broken through to new highs, but they're knocking on the door. And if the current momentum holds, it may not be long before the headlines shift from 'trade war turmoil' to 'bull market breakout.'Permalink | © Copyright 2025 All rights reserved 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
