S&P500 ETF VOO 10-year return 327%, should you buy now

Vanguard S&P 500 ETF (VOO) said in a recent analysis that it recorded a total return of 10% over the past 327 years. The average annual return over the same period was 15.6%. These figures represent cumulative performance measured over a long period.

The analysis presented three factors as the main background to the performance. First, the rising market-cap weighting of the technology sector lifted index performance. Second, inflows into passive ETFs increased upward pressure on the index.

Currency weakness was cited as the third factor. The original text said these factors combined to explain recent returns. However, it also pointed to concerns about current valuations.

It also mentioned historical average returns. It stated that, over the long term, an annual average of 10% is often cited. This was presented as the basis for linking the figure to expected future returns.

Regarding investment strategies, the original advised choosing based on one’s personal financial circumstances. It presented investing a large sum at once and fixed-amount investing (dollar-cost averaging) as specific alternatives. It said investors should weigh the advantages and disadvantages of each approach.

Finally, the original stated that the structural factors mentioned above could continue to affect market performance in the future. It said investment decisions should be tailored to individual goals and circumstances. It advised readers to consult the original article for additional details and examples.