Vanguard S&P 500 ETF (VOO)
Analysis done on daily timeframe. If you’re looking for a stock to buy and forget till retirement then look no further than Vanguard’s S&P 500 ETF VOO. Exchange traded funds (ETFs) are one of the best investment vehicles to hold over the years for lower risk exposure in a specific sector or for the market as a whole. VOO offers investors the ability to invest int he S&P 500 as a whole without taking on the risk that comes with buying an individual company. No matter how great a company is, even a name like Apple, there’s still a risk that the company may fail one day and that is something to consider when buying anything for retirement. One of the best ways to build a portfolio is by dedicating the majority of the capital into ETFs such as SPY or VOO, then adding other names after building a strong ETF foundation.
Often times long term investors will compare SPY and VOO as investments to build overtime, and while both deliver about the same returns, one has a slightly higher management fee than the other. It costs money for funds to manage the ETF so they charge the investor a small management fee, SPY’s is .09% and VOO’s is .03%, making VOO a bit cheaper to buy in the long run.
The best approach to buy these ETFs is by using the Dollar Cost Averaging (DCA) strategy. This strategy is very simple and doesn’t rely on specific price entry, it simply requires the trader to consistently buy the ETF month over month no matter the price. Overtime, the price eventually averages out through the ups and downs and begins to grow through the bull cycles.