Where Will the Vanguard S&P 500 ETF (VOO) Be in 20 Years? Here's What Decades of Stock Market History Suggests.
Key Points
The S&P 500 has historically registered an annualized total return of about 10%.
If the past is any guide, investors who buy the Vanguard S&P 500 ETF should do this well.
If you buy and hold for 20 years, your money will grow by nearly sevenfold.
- 10 stocks we like better than Vanguard S&P 500 ETF ›
There are many ways to gain access to the stock market. Investors can buy individual securities. But another popular method is to add an exchange-traded fund (ETF) to your portfolio.
When it comes to the latter strategy, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is a top choice. It provides instant exposure to the S&P 500 (SNPINDEX: ^GSPC).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Where will this ETF be in 20 years? Here's what decades of stock market history suggest.
Image source: Getty Images.
Since 1957, the S&P 500 has produced an annualized total return of about 10%. There have been numerous adverse events that the market has overcome, resulting in occasional sizable drawdowns. But the long-term trend is undeniable.
Assuming this level of performance continues far into the future, the Vanguard S&P 500 ETF will generate a cumulative total return of 573% over the next two decades. Those who buy $10,000 of this investment vehicle today will see their initial capital grow to $67,275 by August 2046.
This is how compounding works. In any single year, the returns don't appear all that impressive. It might even be hard to notice, as day-to-day volatility can mask durable gains.
However, the results add up over time. Investors who are patient and disciplined will find that the stock market is arguably the best tool for building lasting wealth. The data on past performance paints a clear picture.
Should you buy stock in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,943!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,819!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 14, 2026.
Neil Patel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
Recommended Articles
