Tech stocks have gone from being hot buys to suddenly falling in value. Trying to track which stocks to buy and sell can be a time-consuming process for investors. To avoid all the work that can come with following individual stocks, investors may simply be better off investing in a diversified exchange-traded fund (ETF).
The Vanguard S&P 500 ETF (NYSE Arca:VOO) is a passively managed fund which looks to give investors exposure to large U.S. companies by tracking the S&P 500. The fund comes with a fairly low management fee of 0.08%, which ensures that fees aren’t taking a big chunk out of your overall returns.
It has more than 500 stocks, with 81% being in the large cap category. Tech stocks account for 31% of its holdings, followed by financials at 13%, healthcare at 12%, and many others at lower representations.
Many of the top holdings are ones with investors would be familiar with, including big names such as Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Apple (NASDAQ:AAPL), each accounting for more than 6% of the fund’s overall weight.
Since the fund looks to track the S&P 500, its returns over the years are largely similar to that of the broad index, with total returns (including dividends) totaling more than 230% over the past 10 years.
If you want a no-nonsense strategy for investing, a low-cost fund such as the Vanguard S&P 500 ETF can be a great option. You won’t have to worry about which stocks are trending and which ones aren’t doing poorly, as you’ll have broad coverage to all sectors of the market.
