The Vanguard S&P 500 ETF is popular on Robinhood, with Tom Lee predicting the index will hit 15,000 by 2030 due to AI demand and millennial influence. The fund trades at an expensive 22.2 times forward earnings, historically correlating with 3% annual returns. Top holdings include Nvidia, Microsoft, Apple, and Amazon.

Lee believes AI and millennials will propel the S&P 500 to 15,000 by 2030, citing a global labor shortage and millennial spending. The S&P 500’s high valuation may limit returns, but AI and millennial trends could drive growth. S&P 500 index funds like Vanguard S&P 500 ETF have historically been solid investments.

The Vanguard S&P 500 ETF tracks 500 large U.S. companies, heavily weighted in the technology sector. The S&P 500 has seen a 95% increase over five years, compounding at 14.3% annually. Tom Lee’s prediction implies over 17% annual returns to reach 15,000 by 2030, offering potential for significant gains.

Read more at Nasdaq: The No. 1 Vanguard Index Fund on Robinhood Could Soar 138% With Help From AI, According to a Wall Street Analyst