Key Points
The Vanguard S&P 500 ETF (VOO) has historically awarded consistency with impressive returns.
VOO checks many boxes at once, making it an ideal passive investment.
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is the most popular ETF on the stock market and has been one of the most reliable moneymakers since it began trading in September 2010. Since then, it has averaged 12.5% annual returns, helping millions of portfolios along the way.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Getty Images.
Only time will tell how the next 20 years will play out for VOO, but I'm willing to bet on continued growth. Here's how much $500 monthly investments could grow to over 20 years based on different average annual returns:
| Average Annual Returns | Investment Total After 20 Years |
|---|---|
| 8% | $273,600 |
| 10% | $342,400 |
| 12.5% | $456,500 |
Table by author. Returns reflect VOO's 0.03% expense ratio and are rounded down to the nearest hundred.
The one-stop shop
VOO is a great option because it's a true set-it-and-forget-it investment ETF. Instead of researching individual stocks and taking on the risks that come with them, you can invest in one ETF that holds hundreds of the world's top companies.
VOO will inevitably hit rough patches, but it has shown time and time again that it's resilient and delivers strong long-term results. It has been a true "down but never out" investment, and there's no reason to believe that'll change. Consistently investing in an S&P 500 ETF has been one of the most surefire ways to build wealth in the stock market. No need to overcomplicate it.
Stefon Walters 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.