If You Invest $1,000 in the Vanguard S&P 500 ETF Right Now, Here's What History Says It Could Be Worth in 20 Years
The Vanguard S&P 500 ETF is a great core investment.
If You Invest $1,000 in the Vanguard S&P 500 ETF Right Now, Here's What History Says It Could Be Worth in 20 Years
Overview
Investing is one of the best ways to create long-term wealth. And while past performance doesn't guarantee future returns, the market as a whole has always marched higher over the long run.
Investing in individual stocks can actually be quite difficult, as most stocks underperform the market; J.P. Morgan analysts found that about 40% of stocks produced negative total returns between 1980 and 2020. It also didn't matter what sectors you invested in, as all had their fair share of losers.
Details
However, the market as a whole during this stretch performed well, led by a group of megawinners that outperformed the Russell 3000 Index by 500% or more. About 10% of the stocks in the Russell 3000, which comprises the 3,000 largest companies in the U.S., met this criterion. And it is largely these megawinners that have helped power the S&P 500 higher over the years, as well.
Source
Originally published at www.fool.com.
