What a $10,000 Investment in the Vanguard S&P 500 ETF (VOO) a Decade Ago Is Worth Today
Key Points
The S&P 500 encompasses 500 of America's biggest companies.
Together, they represent about 80% of the U.S. stock market's value.
Even Warren Buffett has recommended S&P 500 index funds.
- 10 stocks we like better than Vanguard S&P 500 ETF ›
You've probably run across recommendations to buy into the Vanguard S&P 500 ETF (NYSEMKT: VOO) plenty of times. Even Warren Buffett has recommended low-fee S&P 500 index funds, citing Vanguard's as a prime example. In his 2013 letter to shareholders, he wrote about his directions to his trustee for his eventual bequest to his wife:
Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors -- whether pension funds, institutions or individuals -- who employ high-fee managers.
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What would $10,000 grow to in a decade in the S&P 500?
How well can you do with a mere S&P 500 index fund? Let's take a look:
|
Period |
Average Annual Gain |
|---|---|
|
Past three years |
21.25% |
|
Past five years |
12.86% |
|
Past 10 years |
15.38% |
|
Part 15 years |
15.45% |
Source: Morningstar.com as of Sept. 3, 2026.
Not bad, right? If you plunked, say, $10,000 into this fund a decade ago, it would be worth $38,212 -- or $41,688, if you'd reinvested dividends along the way.
All this is kind of misleading, though, because you should not be expecting annual gains of 15% or 20% from the S&P 500 every year. The past 15 years have been unusually strong for the stock market. Know that the S&P 500 has averaged annual returns closer to 10% (ignoring inflation) over many decades.
Don't get discouraged about that 10%, though -- because, according to the folks at S&P Dow Jones Indices, over the past 15 years, the S&P 500 index has outperformed a whopping 90% of managed large-cap mutual funds (as of the end of 2025).
What's in the Vanguard S&P 500 ETF?
As you might have guessed, the fund encompasses about 500 stocks. Together, they make up about 80% of the total U.S. stock market's value. So investing in this fund is a lot like investing in the overall American economy. Here are the recent top 10 holdings:
|
Stock |
Weight in ETF |
|---|---|
|
Nvidia |
7.55% |
|
Apple |
7.04% |
|
Microsoft |
5.36% |
|
Amazon.com |
4.13% |
|
Alphabet Class A |
3.24% |
|
Broadcom |
2.86% |
|
Alphabet Class C |
2.62% |
|
Meta Platforms |
1.90% |
|
JPMorgan Chase |
1.46% |
|
Berkshire Hathaway Class B |
1.46% |
Source: Vanguard.com, as of July 31, 2026.
Should you invest in the Vanguard S&P 500 ETF?
Long-term investors in this fund are likely to do well.
But there are some alternatives worth considering. There are plenty of other solid index funds, for example. There are even some twists on the S&P 500 -- like the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP), which invests in the same 500 companies, but weights them equally, not by their market value. This gives each component an equal chance to move the needle.
However you do it, be sure that you're socking away money for your future financial security. Your future self will thank you.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Selena Maranjian has positions in Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
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