The S&P 500 index, which tracks the performance of the largest 500 companies that are publicly traded on the US stock market, was introduced in 1957. Originally it was founded by Standard and Poor back in 1923, and it was covering 233 companies at the time.
Today the S&P 500 is a prominent benchmark for the US market performance. One of the reasons is its diversity when it comes to the sectors and industries it covers. From technology to healthcare to consumer goods, one could even argue that it could be a representation of the US economy overall.
One simple way to take advantage of the S&P 500 as an investor would be to invest in a fund that tracks the index companies. This not only saves you time and mitigates the risk, but you also have the past performance data of these funds which dates back many years. And if your stock picking strategies are not outperforming these funds then maybe it’s time you hand over the management of your stock market investments.
How much you'd have if you invested in VOO 10 years ago?
The Vanguard S&P 500 ETF (VOO) is among the top of these funds. With net assets totaling $1.2 trillion, it’s one of the largest S&P500 funds you could buy into. Since it’s inception in 2010, it’s been averaging an annual return rate of 14.61%. Its year-to-date return is 30%. Which raises the question: How much does $1,000 invested in VOO 10 years ago would be worth today? Using Stoculator’s free stock calculator, that $1,000 would result in a total of $3,328.10 today (as of November 20, 2024) including reinvested dividends. That’s an annual return of 13.52% and a total return of 232.81%
A good question to ask yourself would be if you have the time and knowledge to outperform these results overall without putting your capital at high risk, especially if you are investing your hard earned life savings.