The S&P 500 Has Returned About 11% Annually Since 1958. Here's the ETF I'd Trust for the Next 30 Years.
Key PointsLeadership in the U.S. equity market has changed significantly over the years.
In 1996, the S&P 500's largest holdings included numerous companies that dominate the current economy, but their roles have evolved significantly. Microsoft is the sole Magnificent 7 stock still present in the top 10 today. Apple faced a corporate crisis before Steve Jobs' return revitalized the company. Nvidia, Amazon, Meta Platforms, Alphabet, and Tesla were non-existent or not publicly traded back then.
Economies are dynamic, leading to substantial changes. When investing long-term, one may attempt to select stocks capable of surviving and flourishing, or opt for an ETF offering broad market exposure. That's why I recommend the Vanguard Total Stock Market ETF (VTI) for a core holding in a multi-decade portfolio.
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