If I Could Only Buy and Hold a Single Stock, This Would Be It

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If I Could Only Buy and Hold a Single Stock, This Would Be It

There’s no need to pick just one company to invest in when you can track the growth of many.

Vanguard’s S&P 500 ETF lets you benefit from the overall market’s performance.

The fund is inexpensive to own, easy to buy and sell, and benefits from the S&P 500’s impressive track record.

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There are plenty of good places to invest your money right now, but tariffs and economic uncertainty are making it much harder to feel confident about buying stocks in some sectors.

I tend to be cautious about where I put my money, but one investment that almost always looks like a good place to invest is the Vanguard S&P 500 ETF (NYSEMKT: VOO). Here are five reasons it would be my only choice if I had to pick just one stock — or in this case, an

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— for my retirement portfolio.

Image source: Getty Images.

One of the best things about the Vanguard S&P 500 ETF is that the money you invest in it will be spread across 500 of the largest U.S. companies, which make up the S&P 500. Because the

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tracks the S&P 500 index, you won’t have to worry about picking stocks across a variety of sectors — you can enjoy a base level of diversification as soon as you own the fund.

With the Vanguard S&P 500 ETF, there’s less of a need to know which sector is booming or which company is inventing the next big thing. This is ultimately a bet on the long-term rise of the broad market.

While the common financial disclaimer, “Past performance is not a guarantee of future results,” applies to this fund just like it applies to every other stock you might own, the S&P 500 does boast a long history of gains.

The index has delivered an average annual rate of return of 10.1% (not accounting for inflation) since 1957. This Vanguard ETF won’t return that exact amount annually — there will up years and down years. But given enough time, the S&P 500 has always rebounded from its lows and made significant gains.

All funds charge fees, usually quantified as an expense ratio, and the average fee for index equity ETFs is 0.14%. That’s already quite low, but Vanguard’s fund is a standout for its ultra-low annual fee of just 0.03%.

That means that for every $10,000 you have in the fund, you’ll pay just $3 annually. This is especially important as your portfolio grows over time. With the Vanguard S&P 500 ETF, you’ll keep more of the gains you make from the market because of the fund’s industry-low expense ratio.

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While Vanguard’s ETF is a fund that tracks the S&P 500, it’s not any more difficult to buy and sell than any other stock. This means that if you need to sell some shares of the fund quickly, exit your position, or buy new shares, you can do it the same way you would with any stock through your preferred brokerage.

And because the fund is one of the most popular options out there — it’s the largest Vanguard ETF — it’s highly liquid for when you’re ready to sell.

The S&P 500 index is composed of some of the largest, most stable, and profitable companies, which means you’ll be invested in quality businesses.

Of course, that doesn’t mean the fund is immune to volatility — it’s been on a wild ride over the past few months in response to tariffs — but it does mean that your money is invested in a fund that tracks the growth of many industry-leading companies.

It’s worth mentioning that given the considerable uncertainty in the market and economy right now, even stable, profitable companies can underperform in this environment. That’s why it’s important for investors to remember that if you buy the Vanguard S&P 500 ETF, you should plan to hold onto it for years, just like any other stock, in order to reap the full rewards.

Before you buy stock in Vanguard S&P 500 ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 

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for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when 

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 made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $614,911!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $714,958!*

Now, it’s worth noting Stock Advisor’s total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of May 5, 2025

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has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a

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.

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was originally published by The Motley Fool

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#Buy #Hold #Single #Stock

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