Best vanguard s and p 500 index funds?
The Vanguard S&P 500 ETF (VOO -0.12%) is one of the most popular investment options for index investors. And with good reason. Its low expense ratio and strong track record of tracking the index make it a great option for those simply looking to match the S&P 500.
The Vanguard S&P 500 ETF (VOO -0.12%) is one of the most popular investment options for index investors. And with good reason. Its low expense ratio and strong track record of tracking the index make it a great option for those simply looking to match the S&P 500.
Most S&P 500 index funds are similar, as they track the same index and contain identical stocks. But three of the most popular options include the Vanguard 500 Index Fund Admiral Shares (NASDAQMUTFUND: VFIAX), Schwab S&P 500 Index Fund (NASDAQMUTFUND: SWPPX), and Fidelity 500 Index Fund (NASDAQMUTFUND: FXAIX).
Vanguard Growth & Income Fund (VGIAX)
VGIAX's one-two punch of investment goals helped it beat the overall stock market in 2022 and 2023. Over the past 10 years, this fund's average annual return is about even with the S&P 500. Likewise, its trailing 12-month dividend yield roughly matches the broad market's.
Rowe Price U.S. Equity Research fund (ticker: PRCOX) is in this exclusive club, having bested—along with a team of about 30 research analysts—the S&P 500 index for the past five years on an annualized basis. U.S. Equity Research is a Morningstar five-star gold-medal fund.
Vanguard S&P 500 (VOO): Historical Returns
In the last 30 Years, the Vanguard S&P 500 (VOO) ETF obtained a 10.06% compound annual return, with a 15.12% standard deviation.
Many consider this a 'boring investment,' but the results the index has produced are nothing to balk at. The average yearly return of the S&P 500 over the last 30 years is 10.7%, but even at a conservative return of 8%, you would have over $146,000 if you invest $100 a month for 30 years.
- Expense ratio. As index funds are passively managed, expense ratios, which represent the fees you pay for the upkeep of your fund, should be nominal. ...
- Minimum investment. ...
- Dividend yield. ...
- Inception date.
| Symbol | Name | 5-Year Return |
|---|---|---|
| USD | ProShares Ultra Semiconductors | 52.14% |
| FNGU | MicroSectors FANG+™ Index 3X Leveraged ETN | 52.10% |
| FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 48.60% |
| SOXL | Direxion Daily Semiconductor Bull 3x Shares | 40.97% |
- SPDR S&P 500 ETF Trust.
- iShares Core S&P 500 ETF.
- Schwab S&P 500 Index Fund.
- Shelton NASDAQ-100 Index Direct.
- Invesco QQQ Trust ETF.
- Vanguard Russell 2000 ETF.
- Vanguard Total Stock Market ETF.
- SPDR Dow Jones Industrial Average ETF Trust.
What is Vanguard's best performing fund?
Vanguard 500 Index Fund Admiral Shares (VFIAX)
This Admiral Shares mutual fund requires a $3,000 minimum investment but charges a very low 0.04% expense ratio. This fund has been a powerhouse over the past decade, returning an annualized 12% over the 10-year trailing period ending Dec. 31, 2023.
- Vanguard 500 Index Fund (VFIAX) ...
- Vanguard Total Stock Market Index Fund (VTSAX) ...
- Vanguard Total Bond Market Index Fund (VBTLX) ...
- Vanguard Balanced Index Fund (VBIAX) ...
- Vanguard Growth Index Fund (VIGAX) ...
- Vanguard Small Cap Index Fund (VSMAX)
Vanguard 500 Index Fund Admiral Shares (VFIAX)
When investing for retirement, it makes sense to own an S&P 500 index fund. The S&P 500 offers broad exposure to large-cap equities and is a good reflection of the health of the stock market and, indirectly, the U.S. economy.
S&P 500 Index Versus Nasdaq 100 Performance
Nasdaq 100 has outperformed S&P by a wide margin. The average 10-year return of Nasdaq 100 over these 15 years was around 9%, while that of S&P 500 was about 5%.
| Fund Name | 5 Years Return | 10 Years Return |
|---|---|---|
| Quant Large and Mid Cap Fund (G) | 23.6% | 22.4% |
| HSBC Value fund (G) | 20.5% | 21.0% |
| Nippon India Growth Fund (G) | 24.9% | 20.8% |
| Kotak Infrastructure & Economic Reform Fund Standard Plan (G) | 23.2% | 20.8% |
| Company | Sector | 5 Year Total Return |
|---|---|---|
| Fair Isaac (FICO) | 🖥️ Information Technology | 448% |
| Quanta Services (PWR) | 🏭 Industrials | 445% |
| Eli Lilly and Co (LLY) | 🚑 Health Care | 440% |
| Axon Enterprise (AXON) | 🏭 Industrials | 429% |
| Benchmark | Returns as of 12/31/2023 | Average Annual Total Returns as of 12/31/2023 |
|---|---|---|
| 1 Month | 10 Year | |
| Balanced Composite Index | 4.70% | 7.96% |
| Bloomberg 1 Year Municipal Index | 0.58% | 1.09% |
| Bloomberg 1-15 Year Municipal Index | 1.89% | 2.58% |
While SPY has an annual expense ratio of 0.0945%, VOO's is just 0.03%. Although both are relatively small expense ratios in the world of ETFs, SPY's is more than three times the amount of VOO's.
The fund has returned 10.10 percent over the past year, 10.32 percent over the past three years, 10.97 percent over the past five years and 11.14 percent over the past decade.
A well-constructed dividend portfolio could potentially yield anywhere from 2% to 8% per year. This means, to earn $3,000 monthly from dividend stocks, the required initial investment could range from $450,000 to $1.8 million, depending on the yield. Furthermore, potential capital gains can add to your total returns.
How much do you need to invest in S&P 500 to become a millionaire?
Data source: Author's calculations. As you can see from the chart, investing $5,000 annually in the S&P 500 would make you a millionaire in a little over 30 years, assuming average 10.25% annual returns.
Calculate the Investment Needed: To earn $1,000 per month, or $12,000 per year, at a 3% yield, you'd need to invest a total of about $400,000. Calculation: $12,000 / 0.03 = $400,000.
Exchange-traded funds, especially ones that track major indexes like the S&P 500, are an easy way to start putting your money to work. Low fees and a solid track record are key features to focus on. Consistent investing through dollar-cost averaging is an effective way to increase your returns over the long term.
The S&P 500 is up about 23% year to date. Investors in that index should 'set a strategy and stay invested,' expert says. The S&P 500 has seen strong gains in 2023. Here's what experts say you should consider before doubling down on exposure to that index in 2024.
- Find your S&P 500 index fund. It's actually easy to find an S&P 500 index fund, even if you're just starting to invest. ...
- Go to your investing account or open a new one. ...
- Determine how much you can afford to invest. ...
- Buy the index fund.
