Why I'm Still Investing in VTI Right Now No Matter What the Stock Market Does
Key PointsThe S&P 500 has delivered 593% total return since September 2011 and 10% annualized returns since 1928.
Investors often perceive the stock market as being so successful that it may seem suspicious, with the S&P 500 index delivering impressive gains over the years. However, this perception overlooks the value of long-term investing. For instance, a $200 monthly investment in an S&P 500 ETF over 40 years could yield over $1 million, even with the inclusion of significant economic downturns.
The S&P 500 has an impressive average return of 10%, but the broader U.S. market, as represented by the Vanguard Morningstar Total Stock Market ETF (VTI), has provided even more robust returns. VTI includes a vast array of stocks, from large-cap companies to mid- and small-cap firms, and boasts a lower expense ratio than S&P 500 ETFs.
The fund's resilience over time, spanning 98 years, underscores its reliability for long-term investors. Despite occasional downturns, the long-term outlook for the stock market remains optimistic, making VTI a compelling choice for those seeking to invest with confidence and potential for substantial growth.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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