The Vanguard Total Stock Market Index Fund Will Remain the Top Performer in the Market for the Next Decade

Sunday 16th of March 2025 07:45:00

Vanguard Index Fund Buy: Will It Beat the S&P 500 in 2025?

Investors looking for a low-cost way to ride the market's ups and downs may want to consider Vanguard's Index Fund buy, which has a proven track record of outperforming the broader market. In this article, we'll explore whether this fund has what it takes to beat the S&P 500 in 2025.

Vanguard's Index Fund: A Proven Performer

Vanguard's Index Fund is a popular choice among investors seeking broad market exposure with minimal effort. The fund tracks the CRSP US Total Market Index, which includes nearly all publicly traded US stocks, with the exception of a few highly illiquid names. This broad diversification has historically led to lower volatility and higher returns over the long term.

In recent years, the fund has consistently outperformed the S&P 500, with a five-year annualized return of 12.4% compared to the S&P 500's 11.6%. This outperformance is not surprising, given the fund's ability to capture the returns of the entire market, rather than just a select group of large-cap stocks.

Why Buy Vanguard's Index Fund in 2025?

So, why might Vanguard's Index Fund be a good choice for investors in 2025? Here are a few reasons:

  1. Low costs: With an expense ratio of just 0.04%, Vanguard's Index Fund is one of the cheapest options on the market. This means that investors can keep more of their returns, rather than paying them out to a fund manager.
  2. Broad diversification: By tracking the CRSP US Total Market Index, the fund provides broad diversification, which can help reduce risk and increase returns over the long term.
  3. Proven track record: As mentioned earlier, the fund has consistently outperformed the S&P 500 in recent years. This suggests that it may be a good choice for investors looking for a low-cost way to participate in the market's growth.

Will Vanguard's Index Fund Beat the S&P 500 in 2025?

While past performance is no guarantee of future results, Vanguard's Index Fund has a strong track record of outperforming the S&P 500. In 2025, investors may want to consider this fund as a way to participate in the market's growth, while keeping costs low and minimizing risk.

Of course, it's always important to remember that investing in the stock market involves risk, and there are no guarantees of returns. However, for investors looking for a low-cost, diversified way to ride the market's ups and downs, Vanguard's Index Fund may be a good choice.