1 S&P 500 ETF to Buy With $1,000 and Hold Forever
1 S&P 500 ETF to Buy With $1,000 and Hold Forever
Neil Patel, The Motley FoolSat, March 7, 2026 at 11:09 AM UTC
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Key Points -
The Vanguard S&P 500 ETF is offered by an investment management industry stalwart with a five-decade history.
Investors have achieved impressive results over the past 10 years, with a low fee.
Those with the patience to hold over the long term will be rewarded.
10 stocks we like better than Vanguard S&P 500 ETF ›
Investors are making the right choice by putting money to work in the stock market. Over long periods of time, it has proven itself to be a great tool at building wealth. There's no index that's more closely watched than the S&P 500. Luckily, investors can choose from many exchange-traded funds (ETFs) when figuring out how to allocate capital.
Here's the best S&P 500 ETF to buy with $1,000 and hold forever.
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Investments section of newspaper with ETF box circled in red marker.
Image source: Getty Images.
What's in your portfolio?
Investors should examine the Vanguard S&P 500 ETF (NYSEMKT: VOO). It's a solid option partly because of the business that offers it. Vanguard has been a leader in the investment management industry since 1975. As of Dec. 31, 2025, it had $12 trillion in assets under management. This shows investors the amount of money that trusts the company.
The Vanguard S&P 500 ETF tracks the performance of the S&P 500. With hundreds of stocks that all have a U.S. presence, investors are betting on the American economy to continue its track record of inventiveness and growth. That's historically been a smart perspective to have.
Lately, large technology stocks have had a pronounced effect. Consequently, investors are positioning their portfolios to be bullish on certain secular trends. The list includes artificial intelligence, which has been experiencing a major boom.
Stellar performance at a low cost
Over the past decade, the Vanguard S&P 500 ETF has produced a total return of 309% (as of March 3). On an annualized basis, investors were able to achieve a phenomenal 15% gain. Had you bought $1,000 10 years ago, you'd have close to $4,100 right now. The long-term average performance of the S&P 500 index falls short of this.
Besides the performance, which is probably the data point investors care about most, it's critical to know what the cost is. This ETF stands out thanks to its super-low expense ratio of 0.03%. Compared to the sea of high-priced investment vehicles out there, investors get to keep more of their money over time with the Vanguard S&P 500 ETF.
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Patience is rewarded
There's been a lot of chatter recently about the market's valuation. Some pundits think we are in for poor returns in the years ahead. This kind of pessimistic forecast gets a lot of attention.
But it should not discourage investors from allocating capital to the Vanguard S&P 500 ETF, even though it trades near all-time highs. Those with the patience to be able to hold for decades will be rewarded.
Should you buy stock in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,817!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,912!*
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*Stock Advisor returns as of March 7, 2026.
Neil Patel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
Source: “AOL Money”
