1 Vanguard Index Fund to Purchase Before It Rises 103%, According to a Wall Street Analyst

May 10, 2026

The S&P 500 is often seen as the best gauge of the U.S. stock market. Tom Lee from Fundstrat Global Advisors believes this index might hit 15,000 by 2030, which would be a significant rise from its current level of 7,386.

Investors could enhance their portfolios by buying shares in the S&P 500 Index Fund, particularly the Vanguard S&P 500 ETF. Here are some key points to consider.

Could AI make someone a millionaire? Our team has released a report on a lesser-known company dubbed “Indispensable Monopoly,” which provides essential technology for both Nvidia and Intel.

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Vanguard S&P 500 ETF offers access to top influential stocks

The Vanguard S&P 500 ETF is linked to the S&P 500, an index of 500 prominent American companies, representing roughly 80% of domestic stocks and about 50% of global market capitalization. While the fund includes stocks from various sectors, it predominantly emphasizes technology.

In essence, the Vanguard S&P 500 ETF allows investors to tap into many of the world’s leading firms, especially in the tech field.

Here are the top ten holdings by weight:

NVIDIA: 7.5%
Apple: 6.6%
Alphabet: 5.3%
Microsoft: 4.9%
Amazon: 3.6%
Broadcom: 2.6%
Meta Platforms: 2.2%
Tesla: 1.8%
Berkshire Hathaway: 1.5%
JPMorgan Chase: 1.3%

Over the past two decades, the S&P 500 index has climbed 485% (averaging 9.1% annually) without accounting for dividends. When dividends are included, the return is a substantial 758% (11.2% annualized). This growth occurred despite the U.S. economy facing two recessions during this period.

Looking forward, if Tom Lee’s forecast holds true and the S&P 500 reaches 15,000 by 2030, we might see total annual returns exceeding 15%.

Tom Lee believes Millennials and AI will drive the S&P 500 to 15,000

Tom Lee, leading research at Fundstrat Global Advisors, predicts that the S&P 500 will touch 15,000 by 2030. He cites the growing influence of millennials and the impact of artificial intelligence as significant factors.

Millennials are now the largest adult demographic, shaping the economy as they begin to earn the highest incomes of their lives. They are also set to inherit an unprecedented $68 trillion in wealth over the next two decades, amplifying their economic influence.
The use of artificial intelligence to boost productivity is expected to be a major catalyst for the tech sector, which constitutes 35% of the S&P 500. Many analysts argue that AI may have an economic impact comparable to the Internet’s revolution or the invention of the microprocessor.

Lee suggests that the current technology boom spurred by AI will lead to extraordinary growth in this sector, driven by a worldwide labor shortage. He points to historical instances, stating, “In periods of labor shortages like from 1948 to 1967 and from 1991 to 1999, we saw technology stocks soar. That’s the pattern we’re witnessing now.”

In conclusion, regardless of whether Lee’s belief that the S&P 500 will hit 15,000 by 2030 is accurate, the index has consistently created wealth over extended periods. Notably, the S&P 500 has always provided positive returns over any 15-year period in its history. Hence, anyone who has invested in an S&P 500 index fund since 1957 would have turned a profit if they kept it for at least that long.

This makes an S&P 500 index fund an appealing option for long-term investors. The Vanguard S&P 500 ETF distinguishes itself with an impressively low expense ratio of 0.03%, meaning investors pay just $3 for every $10,000 invested. In comparison, similar funds typically charge around 0.75%, according to Vanguard.

Is it wise to invest in S&P 500 stocks now?

Before making any decisions on purchasing S&P 500 stocks, it’s important to consider a few factors:

According to Motley Fool Stock Advisor, their analysts have highlighted what they think are the 10 best stocks to consider buying now, and surprisingly, the S&P 500 index wasn’t included in that list. These stocks are expected to offer promising returns in the coming years.

For instance, if you had invested $1,000 in Netflix when it was recommended back on December 17, 2004, you’d have around $471,827 now! Or, if you had chosen Nvidia from its recommendation on April 15, 2005, your initial $1,000 investment would now be worth about $1,319,291.

It’s important to highlight that the average return from the Stock Advisor is 986%, noticeably outpacing the S&P 500’s 207%. In essence, the latest Top 10 list is worth checking out; Stock Advisor is an investing community built by retail investors for retail investors.

See 10 stocks »