If I Could Only Buy and Hold 1 ETF for the Next 20 Years, Here's Where I'd Invest
Vanguard's S&P 500 ETF is still my top recommendation for passive investors.
Overview
Peter Lynch, who led Fidelity's Magellan Fund to beat the S&P 500 (SNPINDEX: ^GSPC) for over a decade, once said: "Everyone is a long-term investor until the market goes down." Like many of Wall Street's other top investors, Lynch believed that many investors lacked the patience and fortitude to hold their stocks through brutal market crashes.
But if you had held the S&P 500 for several decades and tuned out the near-term noise, you'd actually have outperformed most individual stocks and actively managed funds. So if I could only buy a single exchange-traded fund (ETF) in this choppy market to hold for the next 20 years, I'd simply buy Vanguard's S&P 500 ETF (NYSEMKT: VOO).
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Originally published at www.fool.com.