Where Will VOO Be in 20 Years? Here's What History Suggests.

1 hour ago 4

Stefon Walters, The Motley Fool

Wed, July 1, 2026 astatine 10:50 AM CDT 4 min read

The S&P 500, arsenic we cognize it today, has been astir since 1957 and has consistently been 1 of the astir fashionable ways to put successful stocks. It tracks astir 500 of the largest American companies connected the marketplace and checks 3 cardinal boxes: diversification, performance, and debased cost.

There are a fewer S&P 500 ETFs to take from, but my go-to is the Vanguard S&P 500 ETF (NYSEMKT: VOO) due to the fact that of its size (the largest ETF by assets nether management) and debased 0.03% disbursal ratio. VOO has been a lucrative concern implicit the past 20 years, but investing is astir looking forward.

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So, with that said, what tin investors expect implicit the adjacent 20 years?

Person sitting connected a sofa looking astatine a banal illustration connected a laptop.

What does VOO offer?

Investing successful VOO is betting connected the semipermanent maturation of the U.S. economy. Yes, it whitethorn beryllium lone astir 500 companies, but they thrust important economical maturation and activity. And historically, that has been 1 of the amended bets investors could instrumentality successful the market. Even Warren Buffett is connected grounds saying investing successful the S&P 500 is what "makes the astir consciousness practically each of the time."

VOO holds stocks (including virtually each bluish spot stocks) from each 11 large U.S. sectors, but tech stocks present marque up a ample percent of it:

Information Technology: 38.6%
Financials: 11.3%
Communication Services: 10.4%
Consumer Discretionary: 9.7%
Healthcare: 8.3%
Industrials: 8.3%
Consumer Staples: 4.6%
Energy: 3.1%
Utilities: 2.1%
Materials: 1.8%
Real Estate: 1.8%

The percentages volition inevitably alteration implicit clip arsenic companies turn and alteration successful value, but you tin slope connected it continuing to clasp a precise divers acceptable of companies.

What is VOO susceptible of successful the adjacent 20 years?

Past results don't warrant aboriginal performance, but to spot what VOO is susceptible of, let's instrumentality a look astatine its show implicit the past 20 years. In that time, it has averaged 12.7% annualized returns (14.8% erstwhile including dividends). If we presume (huge accent connected "assume") 12% to 14% yearly returns continue, present is astir however overmuch antithetic yearly investments successful VOO would turn to successful 20 years:

Table by author. Returns bespeak VOO's 0.03% disbursal ratio. Totals rounded down to the nearest hundred.

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