If You'd Invested $1,000 in VOO 10 Years Ago, Here's How Much You'd Have Today

Investing a mere $1,000 in Vanguard S&P 500 ETF (VOO) a decade ago would have resulted in a substantial $4,191, assuming dividends were reinvested and no additional investments were made. This impressive growth is the result of the fund's performance over the past decade, which averaged 15.4% annually.

The S&P 500, the benchmark index behind VOO, has been lifted by the so-called "Magnificent Seven" stocks, including some of the earliest and most successful players in the artificial intelligence (AI) sector. To achieve this growth, investors needed to maintain a buy-and-hold strategy, refraining from market timing, selling during declines, or engaging in frequent trading. Consistent, patient investing is often the most effective approach to capitalizing on long-term performance gains.

While some investors may have profited from individual stock picks like Netflix and Nvidia, which were also featured in The Motley Fool's Stock Advisor newsletter, VOO remains an appealing option due to its broad exposure to the largest and most successful companies in the economy. The Motley Fool Stock Advisor team has identified 10 stocks with long-term growth potential, but VOO was not among them.

Nevertheless, VOO's track record of outperforming the S&P 500 by nearly 5x demonstrates its effectiveness as a long-term investment vehicle for individual investors.