If You'd Invested $1,000 in the Vanguard S&P 500 ETF 10 Years Ago, Here's What You'd Have Today
Key Points
This popular exchange-traded fund generated a total return of 322% in the past decade.
Although the market's valuation is a concern today, investors who focus on the long term will be rewarded.
- 10 stocks we like better than Vanguard S&P 500 ETF ›
If investors want to own the S&P 500 index, it's hard to find a better choice than the Vanguard S&P 500 ETF (NYSEMKT: VOO). The low expense ratio of just 0.03% means investors keep more of their hard-earned savings over time.
And the gains have been impressive. If you'd invested $1,000 in this exchange-traded fund (ETF) exactly 10 years ago, here's how much you'd have today.
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A $1,000 starting sum of money would be worth more than $4,200 today. This equates to a 322% total return (as of Aug. 5). On an annualized basis, the total return of 15.4% is exceptional. It's significantly higher than this ETF's historical average of 10%.
It probably doesn't come as a surprise that this stellar performance has been driven by the success of the world's dominant technology companies. The sector as a whole represents a sizable 38% share of the ETF. Consequently, investors gain heavy exposure to artificial intelligence stocks.
The attention today rests fully on the market's valuation. The bears will point to the prospects of poor returns going forward, which is a valid concern.
However, this shouldn't discourage investors from putting money to work. The stock market rewards those with the patience and discipline to think and act like long-term business owners. This mindset has historically paid off.
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 $399,724!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 215% 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 9, 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.
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