3 Reasons the Vanguard S&P 500 ETF Could Be Worth Holding for the Next 20 Years

The Vanguard S&P 500 ETF (VOO) provides exposure to a diversified portfolio of large-cap stocks and the broader U.S. economic growth engine. According to Nasdaq Markets, the fund features a minimal expense ratio of 0.03%.

The Motley Fool notes that while many index components carry over annually, the index undergoes frequent changes. Since 1995, there have been approximately 800 constituent changes, averaging about 27 per year. The Motley Fool reports that roughly 70% of these changes result from corporate events like mergers or acquisitions, while the remainder occur due to factors such as profitability, liquidity, or market cap.

Because a committee selects index members rather than using automated inclusion criteria, the Motley Fool states it can be difficult to predict which companies will remain in the index.

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