The Vanguard ETF That Could Set You Up for Life if You Buy It Today

One of the easiest ways to invest is through ETFs because they cover a lot of ground at once, in most cases. You might not see three- to-four-digit short-term percentage growth as we've seen from some tech and growth stocks, but you also don't take on as much risk when you invest in broad ETFs.

Investing in ETFs doesn't have to mean growing your money slowly, either. Plenty of ETFs have shown they can provide attractive returns and set you up for life. One of those is the Vanguard S&P 500 ETF (NYSEMKT: VOO). If you're looking for a staple for your portfolio, look no further than VOO.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

VOO mirrors the S&P 500 index (SNPINDEX: ^GSPC), which tracks around 500 of the largest publicly traded American companies. Although it holds only large-cap companies, investing in VOO is essentially banking on U.S. economic growth. Nothing is guaranteed, but that has been one of the safer -- and more lucrative -- bets you can make in the stock market.

Since VOO began trading in September 2010, it has averaged nearly 13% annual returns. That average likely isn't sustainable over the long run, so let's assume it averages 10%, which is close to the S&P 500's long-term average. Here's roughly how much different monthly investments would grow in 20 years at that average:

Table by author. Investment totals account for VOO's 0.03% expense ratio and are rounded down to the nearest hundred.

Past performance doesn't guarantee future performance, but there's no reason to believe the S&P 500 won't continue to deliver attractive long-term results, given the companies leading the way.

VOO has become tech-heavy in the past few years (38.6% of the ETF), but it still covers a lot of ground, holding top companies from all major sectors. Whether it's the "Magnificent Seven" stocks, JPMorgan Chase and Visa in financials, Walmart and Costco in consumer staples, UnitedHealth Group and Eli Lilly in healthcare, there are lots of heavyweights in VOO, to which you get instant exposure with a single investment.

There will inevitably be ups and downs along the way, but the S&P 500 has shown time and again that it can withstand even the worst economic conditions. It has bounced back -- and been lucrative -- since every U.S. recession.

If you're looking for an investment that can set you up for life, sustainability should be high on the priority list. That's what you get with VOO. Many people have become very well-off by simply dollar-cost averaging into an S&P 500 ETF and letting time do its job.

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 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and 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 $393,037!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,627!*

That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.

*Stock Advisor returns as of June 24, 2026.

JPMorgan Chase is an advertising partner of Motley Fool Money. Stefon Walters has positions in Vanguard S&P 500 ETF, Visa, and Walmart. The Motley Fool has positions in and recommends Costco Wholesale, Eli Lilly, JPMorgan Chase, Vanguard S&P 500 ETF, Visa, and Walmart. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.

The Vanguard ETF That Could Set You Up for Life if You Buy It Today was originally published by The Motley Fool