If you are like most people and want an easy low cost way to invest that is totally passive, VOO and others index funds like it are a great strategy. Over the past several decades there have been very few fund managers that have consistently beat the market. Managed funds likely won’t perform any better than an index fund such as VOO.
Vanguard also offers other similar funds that mirror the small cap, mid cap and total stock index:
VB- Small Cap
VO- Mid Cap
VTI- Total Stock
All of these have low expense ratios and mirror their respective markets.
The last few decades have also proven that it is best not to attempt to time the market. Waiting to invest in hopes of a downturn makes it likely you will miss out on major growth as well. Making regular monthly investments regardless of the market will win out long term. Whether you want to invest $50 a month or $5,000, this is one of your best options.
If you want to learn more about investing and how regular people can become wealthy check out one of my favorite books The Millionaire Next Door by Thomas Stanley.
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