Is This Simple Index Fund a Millionaire Maker?
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is one of the largest and most popular exchange-traded funds (ETFs) on the stock market. It tracks the S&P 500 (SNPINDEX: ^GSPC) market index with minimal fees and laser-like precision. This Vanguard ETF may be the only investment you'll ever need if you haven't bought your first stock or fund yet. There's nothing wrong with simply matching the average market returns over a long holding period.
At the same time, maybe you want to build your portfolio around a more opportunistic foundation. Isn't the Vanguard FTSE Developed Markets Index Fund (NYSEMKT: VEA) just as promising in the long run, but also undervalued next to its S&P 500-tracker cousin? In short, wouldn't the Developed Markets ETF have a greater chance of making you a million dollars, mostly thanks to its lower returns in recent years?
Let's take a look.
Source Fool.com
