The S&P 500 index has seen a surge in technology stocks, making it an AI and megacap growth play. The Vanguard S&P 500 ETF offers a low 0.03% expense ratio, providing investors with more returns. Dollar-cost averaging into this fund allows for long-term market exposure in a disciplined manner.

With technology stocks now dominating the S&P 500 index, owning the Vanguard S&P 500 ETF means significant exposure to the artificial intelligence theme. The fund has delivered a total return of 15.7% in 2025 through October 21. However, valuations remain high, with a forward P/E ratio around 23 and a CAPE ratio of approximately 40.2.

Despite elevated valuations, the Vanguard S&P 500 ETF remains attractive for specific investors. Dollar-cost averaging can benefit from volatility, and the ETF’s minimal capital gains distributions offer tax efficiency. Investors concerned about valuations can blend strategies by pairing with other ETFs for diversification and global exposure when American multiples compress.

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Read more at NASDAQ: Is the Vanguard S&P 500 ETF a Buy?