Investing Insights on ETFs
Dr. Ed Yardeni, President of Yardeni Research, recently weighed in on whether the market has truly hit rock bottom. For many new investors, the allure of individual stocks can be tempting. It’s easy to be drawn in by those “story stocks” that sometimes skyrocket and make a fortune for a fortunate few. But, and here’s the catch, most investors might benefit more from focusing on index funds or exchange-traded funds (ETFs) that mirror broad market indexes. Familiar names in this space include the Vanguard S&P 500 ETF and the Vanguard Total Stock Market ETF.
Sure, owning assets like VOO ETFs might not be as thrilling, and the potential returns don’t quite match what a single stock might offer. However, these funds provide a solid avenue for investors seeking broader market exposure while skipping the headaches of choosing individual winners. It sounds quite reasonable if you think about it.
U.S. ETF assets managed expected to exceed $25 trillion by 2030, according to Citigroup.
Simply put, picking stocks is challenging, and the numbers back this up. In 2025, the Vanguard S&P 500 ETF climbed by 17.8%, yet a striking 79% of U.S. large-cap active managers couldn’t keep up with it. Interestingly, this statistic was worse than 65% in 2024. It’s actually staggering to think that last year marked the fourth consecutive period when active managers fell short of the S&P 500 since tracking began in 2002.
Goldman Sachs finalizes the purchase of Innovator Capital, pushing ETF assets to $90 billion.
This outcome suggests that even industry professionals, armed with tools and data that the regular investor lacks, still make mistakes far too often. So maybe there’s something to that idea of “VOO and chill,” as it’s sometimes playfully referred to on Reddit.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| VOO | Vanguard S&P 500 ETF – USD DIS | 630.72 | +6.12 | +0.98% |
| VTI | Vanguard Total Stock Market ETF – USD DIS | 338.67 | +3.62 | +1.08% |
For anyone hesitating about diving into basic ETFs like the Vanguard S&P 500 or the Vanguard Total Stock Market ETF, Warren Buffett’s perspective might provide valuable insight. Buffett, widely regarded as one of the top investors ever, has pointed out that everyday investors can surpass professionals by regularly investing in index funds.
ETF Report: Insights and Trends
He has also stated that low-cost index funds represent “the most prudent stock investment for the vast majority of investors.” Those are some strong words to consider.
