Buying an S&P 500 exchange-traded fund (ETF) is one of the best ways for average investors to gain exposure to the stock market. Even Warren Buffett touts its ability to build long-term wealth.
Along the same vein, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is an excellent choice. And its returns have been impressive. If you’d invested $1,000 in this product 10 years ago, here’s how much you’d have today.
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Over the previous decade, the Vanguard S&P 500 ETF has generated a total return of 318% (as of Sept. 25). This would’ve turned a starting $1,000 sum into nearly $4,200 today. On an annualized basis, the 15% gain is light years ahead of its historical 10% average.
Corporate earnings growth has been a powerful catalyst, as has valuation expansion. The S&P 500 index trades at a cyclically adjusted price-to-earnings (P/E) ratio of 41, 55% higher than 10 years ago. This could be the result of greater capital flooding the equity market, boosted by passive investment flows.
Historically low interest rates for much of the decade also helped. And the rise of the tech sector has driven sizable growth.
No one knows what the next 10 years will bring. But Investors should stay bullish while adopting a long-term mindset. The stock market rewards those who are patient.
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 $383,680!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% 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.
*Stock Advisor returns as of September 28, 2026.
