If You'd Invested $1,000 in the Vanguard S&P 500 ETF 10 Years Ago, Here's What You'd Have Today

If investors want to own the S&P 500 index, it's hard to find a better choice than the Vanguard S&P 500 ETF (NYSEMKT: VOO). The low expense ratio of just 0.03% means investors keep more of their hard-earned savings over time.

And the gains have been impressive. If you'd invested $1,000 in this exchange-traded fund (ETF) exactly 10 years ago, here's how much you'd have today.

A $1,000 starting sum of money would be worth more than $4,200 today. This equates to a 322% total return (as of Aug. 5). On an annualized basis, the total return of 15.4% is exceptional. It's significantly higher than this ETF's historical average of 10%.

It probably doesn't come as a surprise that this stellar performance has been driven by the success of the world's dominant technology companies. The sector as a whole represents a sizable 38% share of the ETF. Consequently, investors gain heavy exposure to artificial intelligence stocks.

The attention today rests fully on the market's valuation. The bears will point to the prospects of poor returns going forward, which is a valid concern.

However, this shouldn't discourage investors from putting money to work. The stock market rewards those with the patience and discipline to think and act like long-term business owners. This mindset has historically paid off.

Neil Patel 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 disclosure policy.