Vanguard S&P 500 ETF

VOO

Market cap $802B

Vanguard remains one of the top exchange traded fund (ETF) providers in the market.

Exchange-traded funds can be ideal options for new investors to get started with investing. A couple of strong ETFs can be solid pillars to build your portfolio around for the long haul.

As the S&P 500 mounts a successive recovery, historical data suggests that the index is likely to face bearish sentiment in 2026.

The iShares Russell 2500 ETF offers superior risk-adjusted returns and diversification compared to the popular Vanguard Extended Market ETF. SMMD trades at a lower P/E and P/B, provides a higher yield, and has less concentration risk and lower drawdowns than VXF. While VXF boasts lower fees and greater liquidity, its broader exposure includes more speculative micro-caps, increasing volatility and risk.

The S&P 500 rises more often than it falls, so optimism usually pays off. But the market can and does tumble.

The S&P 500 rebounded to finish flat in November, with blue chips leading and tech lagging, while Health Care outperformed all sectors. Economic data shows rising unemployment but robust consumer spending, with inflation moderating near 2.5% and Q3 GDP growth estimated at 3.7%.

The iShares Core MSCI International Developed Markets ETF and Vanguard S&P 500 ETF offer attractive, low-cost ways to gain exposure to developed market equities. IDEV has outperformed VOO so far in 2025, breaking a trend of underperformance for international equities in the decade up to 2024. I believe IDEV's recent strong run was driven by a mix of low starting valuations and a weak U.S. dollar.

ETFs to watch as Wall Street turns upbeat, with bullish forecasts putting the S&P 500 on track for 8,000 by 2026.

US stocks edge higher on thin post-Thanksgiving volume, but November's losing streak looks set. Tech doubts weigh as indices snap months of gains.

US equity indices traded quietly in a shortened post-Thanksgiving session, with the NASDAQ 100, Dow Jones Industrial Average, and S&P 500 all holding firm near support levels. Short-term pullbacks are viewed as buying opportunities, with December seasonality expected to favor further upside.