I really wish I'd bought shares of the Vanguard S&P 500 ETF (NYSEMKT: VOO) a decade ago. The index fund has delivered an impressive 15.1% annualized total return over the past 10 years. That's a lot better than some of my individual stock picks.
At that return, $10,000 invested in this top ETF would have grown to nearly $41,000 today, assuming dividend reinvestment (over $35,000 without dividend reinvestment). That shows just how powerful an unstoppable compounding machine like the Vanguard S&P 500 ETF can be over the long term. Here's what drove its strong returns, and why buying this ETF is part of my financial plan for the next 10 years.
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 » The Vanguard S&P 500 ETF holds shares of 500 of the largest U.S. publicly traded companies, weighted by market cap. That means it holds more of the most dominant companies, led by the "Magnificent Seven" stocks. This group of mega-cap tech companies has helped drive the S&P 500's returns over the past 10 years.
For example, in 2025, they contributed more than 40% of the S&P 500's total return. Over the last five years, they've delivered a combined return of over 125%, more than double that of the rest of the S&P 500 (59.1%). The Vanguard S&P 500 ETF is a passive investment.
It aims to deliver returns that match the S&P 500 index. For most people, investing in an index fund like VOO is the way to go if you want to slowly build toward retirement. However, I've always had grander ambitions.
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