Key Points

The S&P 500 continues reaching record levels and appears costly.
Still, steady additions to holdings over time remain central to investment achievement.
The Vanguard S&P 500 ETF provides entry to AI leaders plus complete portfolio spread.

Markets are accelerating. The S&P 500 has climbed more than 11 percent year to date and marked the first strong IPO of the period with Cerebras Systems. Attention now turns to what could become the biggest IPO on record as SpaceX prepares to debut in under two weeks, with Anthropic recently submitting filings and OpenAI potentially next.

These developments create enthusiasm, yet investors must proceed with care. At current highs, does the Vanguard S&P 500 ETF (NYSEMKT: VOO) make sense?

Acquire Near Peaks?

The S&P 500 sets fresh records while carrying elevated prices. Its CAPE ratio sits near 40, close to the second-highest mark in history. The prior peak preceded the dot-com decline in 2000 and three straight years of S&P 500 losses.

Investor focus centers on artificial intelligence, driving purchases of related businesses such as hyperscalers, data-center operators, and adjacent firms at increasingly high multiples.

High valuations raise the chance of pullbacks. Core investing favors acquiring assets at reasonable prices rather than premiums.

Regular Action Drives Results

Effective investing relies on consistent participation regardless of conditions because market timing proves unreliable. Past highs and lows appear obvious afterward, but forward decisions rest on informed estimates only. Ongoing purchases across cycles combined with long holding periods maximize the odds of capturing rebounds without perfect foresight.

Index ETFs offer broad market access with lower risk and simpler management. The Vanguard S&P 500 ETF leads its category with 1.6 trillion dollars in assets and a 0.03 percent expense ratio, preserving more returns for owners.

Holdings include prominent AI names for upside in the current environment while spreading exposure across industries. Large upcoming listings such as SpaceX and Anthropic, if valued at trillions, would likely enter the S&P 500 and thus the ETF automatically.

Investing in the fund today works well provided contributions continue, the horizon stays long, and positions are maintained through fluctuations.

Should You Add Vanguard S&P 500 ETF Shares Now?

Before committing capital, review this:

Analysts recently named 10 top stocks for current purchase, and the Vanguard S&P 500 ETF did not appear. Those selected names may deliver substantial gains ahead.

Netflix joined a similar list on December 17, 2004; a 1,000-dollar investment then would now equal 439,847 dollars. Nvidia appeared on April 15, 2005; the same 1,000 dollars would now total 1,342,065 dollars.

The service overall shows 968 percent average returns versus 211 percent for the S&P 500. Review the latest selections and join a community focused on individual investors.

*Returns calculated as of June 5, 2026.

Jennifer Saibil holds shares of Vanguard S&P 500 ETF. The Motley Fool holds and recommends the same ETF and maintains a disclosure policy.

Opinions expressed are those of the author and may not reflect views of Nasdaq, Inc.