Since peaked in January, S&P 500 index It has been traded down and is currently 14% off that record (as of April 22nd). President Donald Trump’s economic policies, particularly trade and tariffs, have caused a lot of uncertainty.
For individual investors, it may be scary to see the value of their portfolios fall. However, it is important to remain optimistic in the long run. This may be the best time to make money.
The stock market is in the middle of selling. The best investors still need to consider buying my top pioneer Funds traded on exchanges (ETF) Currently $2,000.
An easy way to diversify
The S&P 500 is the most closely monitored index for good reason. This benchmark includes some of the largest companies in the United States, representing approximately 80% of the total market value of all shares traded in exchanges in this country.
I’ll see Vanguard S&P 500 ETF (voo 0.73%)) As one of the best ways investors can be exposed to S&P 500 performance. This is an easy way to automatically diversify your portfolio.
ETFs include businesses in all fields, ranging from communication services and consumer discretion to real estate and utility services. And it is exposed to some of the most dominant companies.
ETFs are provided by Vanguard, an industry pioneer that has been around since 1975. Managed assets $10.4 trillion (as of January 31st), this is a highly reputable company that entrusts your hard-earned savings.
Double digits return at a low cost
In 2023 and 2024, the S&P 500 generated 26% and 25% total revenue, respectively. These benefits were great, but investors should not expect this type of performance to continue. Instead, it would be more reasonable to assume that a return to the average is seen.
Over the past decade, the Vanguard S&P 500 ETF has generated a total annual return rate of 11.3%. If you zoom out further, the S&P 500 usually posts a 10% return each year. It is best to have a more mitigated outlook in the future. The card has double digit profit.
It’s hard to complain about these types of outcomes. The data shows that the vast majority of active fund managers, so-called experts in the investment management industry, have lost to the S&P 500 over the long term. And in doing so, they still charge clients a high fee.
The Vanguard S&P 500 ETF is a slightly easier investment option from this perspective. There is a small expense ratio of 0.03%. With a $2,000 investment, you only go to Vanguard to cover the overhead costs for $0.60. That’s quite a thing.
Maintain the correct way of thinking
There is a lot of fear among investors right now. No one is sure how the tariff situation will occur. And people are worried about a recession in the near future. It makes sense for investors to hesitate to spend money on their work. However, it is important to always maintain a long-term mindset.
There are many Bear Market Past corrections. And each time, the S&P 500 eventually recovered and reached a new high. The lesson from investors is to accept that drawdowns are normal. Plus, the best time to invest is when it appears that everyone else is running for the exit.
Investing $2,000 now in a Vanguard S&P 500 ETF is a wise decision that will benefit you in the long term.
Neil Patel has the role of the Vanguard S&P 500 ETF. Motley Fool has posted and recommended positions on the Vanguard S&P 500 ETF. Motley Fools have a disclosure policy.
