The Vanguard S&P 500 ETF Is Magnificent. These Investments Could Be Even Better.

The Motley Fool has galore articles recommending simple, low-fee S&P 500 scale funds arsenic large investments for astir people. And they are great investments. They're not perfect, though, and determination are immoderate different coagulated funds you mightiness privation to see instead. Here's a look astatine a few.

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Why not conscionable instrumentality with an S&P 500 scale fund?

You tin bash rather good with just, say, the Vanguard S&P 500 ETF (NYSEMKT: VOO). It's alternatively concentrated, though, with a caller 39% of its assets invested successful conscionable its apical 10 holdings. Its apical 4 holdings unsocial (as of May 31) -- Nvidia, Apple, Microsoft, and Amazon -- made up 24% of the fund's value. That's not a occupation if you want overmuch of your wealth successful elephantine tech stocks.

However, if you were besides funny successful the different 490-plus companies, they won't beryllium moving the needle much. Here are caller returns for the Vanguard S&P 500 ETF and 4 alternate investments to consider. I'll reappraisal each next.

Data source: Morningstar.com, arsenic of July 9, 2026.

A amended concern if you're seeking adjacent practice

The Invesco S&P 500 Equal Weight ETF is besides an S&P 500 scale fund, but alternatively of weighting the components by marketplace value, with the biggest companies wielding the astir influence, it weights each institution arsenic each quarter. If you privation much vulnerability to each of the companies, not conscionable chiefly the biggest ones, see this fund.

A amended concern if you're seeking passive income -- from dividends

Whereas the S&P 500 precocious featured a dividend output of conscionable 1.1%, the Schwab U.S. Dividend Equity ETF precocious yielded 3.3% -- 3 times more! It's besides been a coagulated grower, arsenic you tin spot successful the array above. If you'd similar some dividend income and share-price appreciation, instrumentality a person look astatine this coagulated ETF.

A amended concern if you're seeking faster maturation

If the S&P 500 isn't delivering capable maturation for you, determination are plentifulness of growth-oriented ETFs to consider, specified arsenic the Vanguard Information Technology Index Fund ETF. Most of them person astir the aforesaid apical 10 holdings arsenic the S&P 500, but value them adjacent much heavily. Understand, too, that galore maturation stocks tin get overvalued, and should the marketplace close oregon crash, they thin to autumn particularly hard.