A Vanguard Index Fund Built for Long-Term Wealth Could Be Your Smartest Buy

Yahoo Finance ·

Among exchange-traded fund (ETF) issuers, Vanguard stands above the rest in my view. The firm had the second-highest assets under management (AUM) at the end of 2025, sitting at $2.64 trillion, trailing only BlackRock . Meanwhile, Vanguard has always been the low-cost leader, focusing on index-based funds . While I'm a stock picker at heart, I think one of the best investments that most people can make is in an index-based ETF. And with their low expenses and strong liquidity, Vanguard index ETFs are some of the best around. The fact of the matter is that the S&P 500 has outperformed more than 85% of actively managed large-cap funds over the past decade. One reason for this is costs, and the expenses of actively managed funds can greatly eat into investors' returns over time. The Vanguard S&P 500 ETF ( VOO -1.40% ) , which tracks the index, has an expense ratio of only 0.03%. That means you're paying only $0.30 for every $1,000 invested. That essentially lets you keep nearly all your gains, which becomes increasingly important as your portfolio balance grows over time.

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