1 Costly Mistake Too Many Investors Make With the Vanguard S&P 500 ETF (VOO)
Investors in the S&P 500 might not be getting quite what they think they are.
1 Costly Mistake Too Many Investors Make With the Vanguard S&P 500 ETF (VOO)
Overview
The S&P 500 (SNPINDEX: ^GSPC), despite its diversified simplicity, has become one of the best investments of the past decade. Over the past 10 years, the Vanguard S&P 500 ETF (NYSEMKT: VOO), which tracks the well-known index, has generated a total return of 327%. That's not quite as good as many tech and growth exchange-traded funds (ETFs) over the same period. But a 15.5% average annual return from a diversified basket of large-cap stocks is really good by almost any measure.
Well, diversification is what many investors think they're getting with the S&P 500, at least.
The truth is that the index is as overweight tech today as it's ever been. With a 35% allocation, the S&P 500 looks less like a fully diversified portfolio and more like a tech fund with other sectors sprinkled around the edges.
Details
Source
Originally published at www.fool.com.
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