Investors are making the right choice by putting money to work in the stock market. Over long periods of time, it has proven itself to be a great tool at building wealth. There’s no index that’s more closely watched than the S&P 500. Luckily, investors can choose from many exchange-traded funds (ETFs) when figuring out how to allocate capital.
Here’s the best S&P 500 ETF to buy with $1,000 and hold forever.
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Investors should examine the Vanguard S&P 500 ETF (NYSEMKT: VOO). It’s a solid option partly because of the business that offers it. Vanguard has been a leader in the investment management industry since 1975. As of Dec. 31, 2025, it had $12 trillion in assets under management. This shows investors the amount of money that trusts the company.
The Vanguard S&P 500 ETF tracks the performance of the S&P 500. With hundreds of stocks that all have a U.S. presence, investors are betting on the American economy to continue its track record of inventiveness and growth. That’s historically been a smart perspective to have.
Lately, large technology stocks have had a pronounced effect. Consequently, investors are positioning their portfolios to be bullish on certain secular trends. The list includes artificial intelligence, which has been experiencing a major boom.
Over the past decade, the Vanguard S&P 500 ETF has produced a total return of 309% (as of March 3). On an annualized basis, investors were able to achieve a phenomenal 15% gain. Had you bought $1,000 10 years ago, you’d have close to $4,100 right now. The long-term average performance of the S&P 500 index falls short of this.
Besides the performance, which is probably the data point investors care about most, it’s critical to know what the cost is. This ETF stands out thanks to its super-low expense ratio of 0.03%. Compared to the sea of high-priced investment vehicles out there, investors get to keep more of their money over time with the Vanguard S&P 500 ETF.
There’s been a lot of chatter recently about the market’s valuation. Some pundits think we are in for poor returns in the years ahead. This kind of pessimistic forecast gets a lot of attention.
But it should not discourage investors from allocating capital to the Vanguard S&P 500 ETF, even though it trades near all-time highs. Those with the patience to be able to hold for decades will be rewarded.