1 Index Fund to Buy That Could Produce Total Returns 5 Times Better Than the S&P 500, According to Certain Wall Street Analysts

The S&P 500 (SNPINDEX: ^GSPC) has produced incredible returns over the last decade. The average annualized total return of the index over the last ten years is about 13.4% as of this writing. And that rate accelerated in recent years, with higher 5-year and 2-year averages.Much of that growth has come from just a handful of stocks, which is fairly common for most periods in stock market history. What isn't common, however, is that the companies driving that growth were already some of the biggest companies in the index. What's more, those companies have all seen their price multiples expand significantly over the last few years as investors grow increasingly optimistic about their potential earnings resulting from investments in things like artificial intelligence.But that leaves the index in a fairly precarious situation. Just eight big tech companies with relatively high valuations account for over one-third of the entire index's value. That led Goldman Sachs to update its long-term outlook in October of last year, estimating average returns of just 3% for the S&P 500 over the next decade. But there's a simple exchange-traded fund (ETF) that could produce total cumulative returns over the same period that are five times better than that, and investors should consider adding it to their portfolios.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool