Is the Vanguard S&P 500 ETF a Buy?
Every seasoned investor knows the Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks America's 500 largest companies, given that it tracks the benchmark S&P 500 index. What's less obvious is that owning it today means significant exposure to the artificial intelligence (AI) theme.
Thanks to the AI juggernaut, the Vanguard S&P 500 ETF has delivered a total return -- including dividends -- of 15.7% in 2025 through Oct. 21. That being said, the index isn't cheap. The S&P 500's forward price-to-earnings ratio sits around 23, above its 25-year average, and the cyclically adjusted price-to-earnings (CAPE) ratio has climbed to approximately 40.2 as of early October.
Is the Vanguard S&P 500 ETF a buy right now? Let's take a closer look at its valuation, growth vectors, and risks to find out.
Source Fool.com
