1 Heavily Diversified Vanguard ETF That Could Outperform the S&P 500 in 2026

Let's be clear. The Vanguard S&P 500 ETF (NYSEMKT: VOO) is an excellent long-term investment vehicle, and so are other low-cost S&P 500 ETFs. Even if you buy at an all-time high, history shows that the S&P 500 is still a great wealth-building tool for investors who measure their returns in decades.However, there are some major drawbacks of the S&P 500 that investors should be aware of. For one thing, the S&P 500 is highly concentrated. It is a weighted index, meaning that larger companies make up more of its assets, and the rise of trillion-dollar tech companies has resulted in a top-heavy index. As its name suggests, there are 500 companies in the S&P 500, but the 10 largest make up more than 40% of an S&P 500 index fund's assets.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool