The investment lessons from the Vanguard 500 Index fund’s 50-year history

The Vanguard 500 Index Fund has returned an average of 10.2 percent annually since its inception in 1976, according to Vanguard data as of 2026. Over that period, the fund's performance placed it above the 80th percentile when compared to actively managed large-cap equity funds, meaning it outperformed 80 percent of funds in its category. The fund tracks the Standard and Poor's 500 index and has $500 billion in assets under management as of 2026.

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