Motley Fool Backs Vanguard S&P 500 ETF as Nasdaq Drops 3.5% on Tech Bubble Fears
Updated
Updated · The Motley Fool · Jun 26
Motley Fool Backs Vanguard S&P 500 ETF as Nasdaq Drops 3.5% on Tech Bubble Fears
2 articles · Updated · The Motley Fool · Jun 26
Summary
A recent market wobble has prompted Motley Fool to favor Vanguard S&P 500 ETF, arguing it remains a durable long-term holding even if a broader downturn develops.
The case rests on the S&P 500’s history: despite crashes, recessions and bear markets, it has delivered nearly 715% total returns since January 2000 and positive returns over every 20-year period studied.
The main near-term risk is concentration. The Magnificent Seven now make up just over one-third of the S&P 500’s value, giving megacap tech outsized influence over the index.
That leaves VOO exposed to sharper short-term swings if tech stumbles further, after the S&P 500 fell about 2% and the Nasdaq nearly 3.5% over the past five days.
The broader takeaway is defensive rather than bearish: use the ETF for long-horizon exposure, but keep the rest of a portfolio diversified enough to absorb volatility.