If I could buy and hold a single stock, that would be all

It is not necessary to choose a single company in which to invest when you can follow the growth of many.
The S&P 500 ETF from Vanguard allows you to benefit from the performance of the global market.
The fund is inexpensive to own, easy to buy and sell, and benefits from the impressive history of the S&P 500.
10 actions that we love better than Vanguard S&P 500 ETF ›

There are a lot of good places to invest your money right now, but the prices and economic uncertainty are making much more difficult to feel confident to buy actions in certain sectors.

I tend to be careful about where I put my money, but an investment that almost always looks like a good place to invest is the Vanguard S&P 500 ETF (NYSEMKT: Flight). Here are five reasons why it would be my only choice if I had to choose a single stock – or in this case, a Stock market negotiated funds – For my retirement portfolio.

Image source: Getty Images.

One of the best things in the ETF Vanguard S&P 500 is that the money in which you invest will be spread over 500 of the largest American companies, which constitute the S&P 500. Because the Stock market negotiated funds Follows the S&P 500 index, you will not have to worry about choosing actions in a variety of sectors – you can enjoy a basic diversification level as soon as you have the fund.

With the Vanguard S&P 500 ETF, there is less need to know which sector is booming or which company invents the next great thing. It is ultimately a bet on the long -term rise in the open market.

Although the common financial warning, “the past performance is not a guarantee of future results”, applies to this fund, just as it applies to all the other actions that you may have, the S&P 500 has a long history of winnings.

The index has delivered an average annual rate of return of 10.1% (and without taking into account inflation) since 1957. This ETF Vanguard will not make this exact amount each year – there will be years and years down. But with enough time, the S&P 500 has always rebounded its stockings and makes important gains.

All funds invoice fees, generally quantified as a spending ratio, and the average costs for ETF in index shares are 0.14%. It's already quite low, but Vanguard's Fund is a star for its ultra-basic annual costs of only 0.03%.

This means that for every $ 10,000 you have in the fund, you will only pay $ 3 a year. This is particularly important as your wallet develops over time. With the Vanguard S&P 500 ETF, you will keep the earnings that you make of the market more due to the fund industry industry spending ratio.

While Vanguard's ETF is a fund following the S&P 500, it is not more difficult to buy and sell than any other title. This means that if you need to quickly sell funds from the fund, leave your post or buy new actions, you can do it in the same way as you would with any stock via your favorite brokerage.

And because the fund is one of the most popular options on the market – it is the largest ETF Vanguard – it's very liquid when you are ready to sell.

The S&P 500 index is made up of some of the most important, most stable and profitable companies, which means that you will be invested in quality companies.

Of course, this does not mean that the fund is immune to volatility – it has been a tour of the last months in response to prices – but it means that your money is invested in a fund following the growth of many advanced companies.

It should be mentioned that, taking into account the considerable uncertainty on the market and the economy at the moment, even stable companies, profitable companies can underline in this environment. This is why it is important that investors remember that if you buy the Vanguard S&P 500 ETF, you should plan to keep it for years, like any other stock, in order to harvest the complete rewards.

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Chris Neiger has positions in Vanguard S&P 500 ETF. The Motley Fool has positions and recommends Vanguard S&P 500 ETF. The Word's madman has a Disclosure policy.

If I could buy and hold a single stock, that would be all was initially published by the Motley Fool

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