It's investing advice that you've probably heard over and over again: buy an index fund, don't touch it, and watch your nest egg grow. And when it comes to index funds, the S&P 500 index fund is often at the top of the list for many investors. Lower fees have helped fuel the strong growth of Vanguard and iShares index-focused funds, making them increasingly popular choices for those looking to passively invest in the stock market.
While it may not be the most popular index fund, the S&P 500 index fund should not be overlooked due to the balance it offers. With three stocks making up 20% of the fund, it provides a diversified exposure to the heart of the U.S. stock market. One of the most well-known S&P 500 index funds is the Vanguard S&P 500 ETF (VOO 0.53%), known for its low expense ratio and solid performance over time.
According to Tom Lee at Fundstrat Global Advisors, the S&P 500 is expected to reach 15000 by 2030, emphasizing the long-term growth potential of investing in index funds. From beginners to experienced investors, S&P 500 index funds offer a simple and effective way to grow wealth over time. Whether you're starting with $1000 or looking to build a substantial nest egg, these funds can play a key role in your investment strategy.