Prediction: Buying This Vanguard ETF Today Could Set You Up for Life

While determination are galore ETFs to take from, this Vanguard money tin supply stableness portion perchance mounting you up for life.

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If you're looking for a comparatively harmless and unchangeable concern for semipermanent growth, you can't spell incorrect with the Vanguard S&P 500 ETF (NYSEMKT: VOO). This money tracks the S&P 500 (SNPINDEX: ^GSPC), holding stocks from each 500 companies wrong the index.

There are a fewer reasons wherefore an S&P 500 ETF tin beryllium a harmless yet almighty investment:

• It provides plentifulness of diversification: The S&P 500 itself includes companies crossed each sectors of the market, which tin assistance bounds risk. If 1 manufacture is deed harder than the remainder during a downturn, determination are plentifulness of different stocks to assistance prop up the money and support your portfolio.

• It has an impeccable way record: According to investigation from Crestmont Research, the S&P 500 has posted affirmative full returns successful each azygous 20-year play successful its history. This means that by holding an S&P 500 ETF for astatine slightest 20 years, you're incredibly apt to spot affirmative full returns -- adjacent if the marketplace is volatile successful that time.

• It focuses connected manufacture giants: The companies wrong the S&P 500 are among the largest and strongest successful the U.S., which tin further support against risk. While adjacent industry-leading juggernauts are susceptible to marketplace volatility, they're acold much apt to recover.

The S&P 500 ETF is truthful strong, successful fact, it comes highly recommended by investing fable Warren Buffett. In 2008, Buffett stake $1 cardinal that an S&P 500-tracking money could outperform a radical of 5 actively managed hedge funds. He easy won that bet, with his money earning full returns of astir 126% implicit 10 years, portion the hedge funds averaged returns of conscionable 36% successful that time.

There's nary mode to cognize for definite however immoderate concern volition fare, arsenic past show doesn't foretell aboriginal returns. Historically, though, the S&P 500 itself has earned a compound yearly maturation complaint of astir 10%.