The Vanguard S&P 500 ETF (VOO) Is the Most Popular ETF in the World. Here's One I Like Even Better.
This ETF has outperformed the market over time.
The Vanguard S&P 500 ETF (VOO) Is the Most Popular ETF in the World. Here's One I Like Even Better.
Overview
It's hard to beat the market. And more and more people are realizing that, instead of trying to, it makes sense to invest in it instead.
Today, many indexes serve as proxies for the market's performance. The S&P 500 (SNPINDEX: ^GSPC) is the benchmark index, comprising a cross-section of U.S. public companies that have each reached a market cap of at least $22.7 billion. It has a bias toward growth companies, and the requirements to join the index include consistent profitability. Struggling companies tend to get replaced if they can't recover from a setback. The relatively stringent selection criteria mean the index tends toward growth over time.
Details
It follows that tracking the S&P 500 with an index fund is a simple way to mimic its returns, and the low-cost Vanguard S&P 500 ETF (NYSEMKT: VOO) has ballooned to $1.7 trillion in total net assets, becoming the largest ETF in the world. Investors love its ease and reliability, and the opportunity to benefit from returns over time. Although it's a great strategy, there's another ETF I like even better.
Source
Originally published at www.fool.com.
