Could Buying a Simple S&P 500 Index Fund Today Set You Up for Life?

From Nasdaq: 2025-04-23 07:46:00

Investing in a low-fee S&P 500 index fund can be a smart move for long-term growth. Even Warren Buffett endorses it, with an annual fee as low as $3. The top 10 index components include Apple, Microsoft, and Amazon, with the S&P 500 representing 80% of the U.S. stock market’s value.

An S&P 500 index fund tracks the 500 biggest U.S. companies, offering similar performance with low fees. Investing $7,500 annually could grow to $1,395,766 in 35 years at an 8% growth rate. This fund has outperformed managed large-cap stock mutual funds, making it a popular choice for investors seeking market returns.

Consider the Vanguard S&P 500 ETF (NYSEMKT: VOO) for long-term growth. Investing in an S&P 500 index fund provides exposure to 500 top American companies, offering a diversified and stable investment option. With historical annual gains around 10%, this fund can potentially yield significant returns over time for investors.



Read more at Nasdaq: Could Buying a Simple S&P 500 Index Fund Today Set You Up for Life?