Vanguard’s S&P 500 index fund changed how we invest — but there may be a smarter way to get into the market

Vanguard introduced a low-cost S&P 500 index fund that enabled retail investors to track the index with minimal fees. The fund became widely adopted and contributed to a shift toward passive investing strategies among individual investors. Economists and investors have raised questions about the long-term effects of widespread index fund adoption on market pricing and individual stock valuations.

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