The best Vanguard Index Fund for 2020 is VOO ETF. VOO (The Vanguard 500 Index Fund) provides flexibility to the S&P500 and provides investors the best method to gain access to 508 stocks in the stock market. As more and more brokerages offers $0 commissions, it attracts more potential investors into the stock market. It can be very confusing and intimidating when looking for the perfect ETF or Index Fund to put your hard earned money into - and it should be. Making the wrong investment decisions early in life can really have a big negative impact on your future - so VOO is the solution here. VOO is regarded as the best option across the board for a few main reasons: 1) Broad Market Exposure VOO ETF contains 508 companies - meaning you're diversified with 508 of the largest companies in America with holding this fund. Within these companies, you're diversified within multiple sectors as well. Tech makes up around 22% of the portfolio, which is expected because some of the largest companies in the world are Tech-based companies. However you also have good weighting with health care, financials, and consumer based stocks - giving you an all around well diversified portfolio to take advantage of growth as well as providing stability during volatile times. You'll notice when compared to the benchmark S&P 500, VOO is more or less the same in terms of distribution of sectors and weights. The one thing that I'm not a HUGE fan of when it comes to the SP500 in general, is that the top 10 holdings make up 22.7% of the overall ETF. This means that 10 out of 508 stocks account for nearly a quarter of your performance - which can be seen a risky by some. However one thing to note is that these top 10 holdings can and do change over time, and these companies gain or lose value to their market cap. The higher the market cap of a company, the more weight it has in the S&P500 and that's why you may have noticed some of the top holdings, like MSFT, AAPL, and AMZN, are all near $1T companies. 2) The Dividend Dividends are relevant, and dividends help contribute significantly to growth in any investment. VOO does pay out a dividend around 1.5%, and if you reinvest this over time, it snowballs into a very powerful tool. It makes sense than VOO pays a dividend as many of the companies in the S&P500 do as well, so they are just passing on those dividend payments to you. As these companies raising their dividend yearly, I would expect VOO to also raise their dividend consistently as well. The 5yr growth rate is almost 9%, which is very impressive by any dividend growth metric but just keep in mind here the risk is that this dividend is 100% dependent on the underlying 508 companies. Meaning, if they cut their dividends say during a recession, that cut will be reflected on VOO as well. That being said, it's unlikely that dividend aristocrats in the S&P500 will cut their dividends, so you can almost guarantee that VOO will be paying some sort of dividend every year moving forward. 3) Low cost fees The biggest drawback with ETF's is that they charge a fee - and VOO is no different. The MER fee for VOO is 0.03%, which is an amount taken from your investment regardless of if the investment has gained or lost value. This is why it's critical to find a product like VOO that has as low fee's as possible, yet I still see so many people invest in ETF's with fees of 0.5% or above. And if you think that 0.5% vs 0.03% doesn't make much of a difference - think again. In the video we go over a comparison investment and you'll see just how much you pay in fees in 0.5% MER vs 0.03% MER. Since inception, VOO has returned 14.02% annually vs the S&P at 14.06% annually. A hypothetical $10000 invested at the beginning of VOO back in 2010, would now yield you nearly $33000! On average the market returns 7% annually, so I would expect those returns over the long term. #Vanguard #IndexFund #ETF #VOO #PositiveInvesting 🔴 *VIP Membership Group* 🔴 View my portfolio & every single trade I make! Join now ► http://bit.ly/2Gk9JfW ☀️ Referral Tools ☀️ TradingView (Stock Charts) ► https://bit.ly/3475WzJ Webull (US Broker + Free Stock) ► http://bit.ly/2VS0QR2 Questrade (Canada Broker + Free Credit) ► http://bit.ly/2ZjQLi6 My Amazon Store ► https://amzn.to/2Dxsf3U ☀️ Follow me on Social Media ☀️ Facebook Group ► http://bit.ly/2v6UfGM Twitter ► https://bit.ly/3dENukp Instagram ► https://bit.ly/3dFQyNh Please LIKE, COMMENT and SUBSCRIBE to support the channel - it helps the channel immensely! Remember to invest positively. Disclaimer & Affiliate Disclose: The information in my videos is strictly for educational purposes only. I will not be held liable for any gains or losses incurred. I'm affiliated with TipRanks, TradingView, Questrade, Webull, and Amazon, however this doesn't influence my opinion on these services. Subscribe for more videos like this: http://bit.ly/2V3mKDZ