The S&P 500 Is 3% Below Its Record. Should You Buy Vanguard's Index Fund Now, or Wait for a Correction?
Should you take the market's small discount now, or hold out for a bigger one?
Overview
The S&P 500 (SNPINDEX:^GSPC) set its most recent record close on Aug. 13, finishing that session at 7,798.99. The index has slipped since then, and as of this writing, it sits about 3% below that mark.
For anyone holding cash, the slide raises a fair question. Is a 3% discount reason enough to buy the Vanguard S&P 500 ETF (NYSEMKT:VOO) now? Or is the smarter move to wait for a deeper pullback?
Details
Not only did the fund become the first exchange-traded fund to surpass $1 trillion in assets in June, but it also took in about $69 billion of new money this year through early June. It owns the more than 500 stocks in the index it tracks (growth stocks and value stocks alike), charges a 0.03% expense ratio, and a single share costs around $693 as of this writing.
Source
Originally published at www.fool.com.