1 Brilliant Vanguard Index Fund to Buy Before It Soars Nearly 160%, According to a Wall Street Analyst

From Nasdaq: 2025-05-26 04:02:00

The S&P 500 is down 1% year to date, with analysts expecting little change for the rest of 2025. However, Tom Lee predicts the index will reach 15,000 by 2030, offering a potential 158% upside. Investors can capture those gains by owning shares of the Vanguard S&P 500 ETF.

The Vanguard S&P 500 ETF tracks 500 large U.S. companies across all market sectors, with a focus on technology stocks. It covers 80% of domestic equities and 50% of global equities by market value. The top 10 positions in the ETF include Apple, Microsoft, Nvidia, Amazon, and Alphabet.

The S&P 500 has seen a 173% increase in the last decade, compounding at 10.5% annually. Including dividends, the total return over the same period was 226%, growing at 12.5% annually. $500 invested monthly during the past 10 years would now be worth over $105,000.

Analyst Tom Lee believes the S&P 500 could hit 15,000 by 2030 due to factors like the millennial generation’s economic impact and a global labor shortage driving demand for AI technology. The Vanguard S&P 500 ETF is a cost-effective option with an expense ratio of 0.03%.

While the S&P 500 has historically generated positive returns over long holding periods, the index fund remains a solid choice for patient investors. The Motley Fool Stock Advisor team has identified 10 stocks that they believe could provide significant returns in the coming years, offering an alternative to the Vanguard S&P 500 ETF.



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