Before You Buy the Vanguard S&P 500 ETF, There’s 1 Sneaky Risk Investors Should Know
With $1.7 trillion in total assets, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is one of the most popular exchange-traded funds (ETFs) available to investors. Since it tracks the benchmark index, the S&P 500, which is viewed as the best way to gauge the U.S. stock market, it makes sense why the ETF is prominent. The low expense ratio of 0.03% also helps drive investor interest.
In the past decade, the Vanguard S&P 500 ETF has generated a total return of 323% (as of Oct. 21). This would’ve grown a starting $1,000 investment into $4,230 today, a gain that’s significantly better than the historical average.
You might think that it’s time to buy this ETF right now. Before making a move, investors should understand one sneaky risk.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.