Do you see the trend? Companies are waiting longer to go public. What does this mean for index investors? Lost upside. Consider Amazon: IPO valuation: 23 billion Current valuation: 2.43 trillion Amazon is 105x bigger now than it was at IPO! If you held VTSAX, you had a piece of this incredible action! If Amazon had IPO'd at 500 billion, the upside would have only been 5x.
The Vanguard S&P 500 ETF is often considered an appropriate investment for savers who want instant diversification in their portfolios. VOO aims to match the performance of the S&P 500 index itself, which consists of the 500 largest publicly traded companies by market capitalization. To put it another way, the companies VOO invests in are large, established businesses. And because there are so many of them, VOO can be a good investment for people who are skittish about researching stocks individually.
Some passive investors have done extraordinarily well by sticking with index funds and not worrying about the individual names that one can pick and choose from. Indeed, portfolio construction isn't for everybody, especially for those who are retiring and seeking to live off their investments. And while it can be as simple as buying and holding an index ETF that mirrors the S&P 500 (or the Nasdaq 100 for younger investors seeking a bit more of a growth jolt),
