The author says that with $1,000 to invest, he would buy the Vanguard S&P 500 ETF (VOO) and hold it for 20 years. The S&P 500 has delivered an annualized total return of 11.2% over the last two decades, as of Oct. 13. The fund has $1.7 trillion in assets, tracks about 500 large, profitable U.S. companies, and yields about 1% in dividends. Its top 10 positions make up 38% of the portfolio, with Nvidia, Apple and Microsoft accounting for 21% of assets. Its expense ratio is just 0.03%, or $0.30 on a $1,000 investment, while higher-fee active funds have often lagged the benchmark. The article stresses patience and a long time horizon, arguing that holding for 20 years is almost guaranteed to make money.
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