The S&P 500 typically delivers strong long-term returns, but this Vanguard ETF has consistently outperformed it.

There are 500 companies from all 11 economic sectors in the S&P 500 ( ^GSPC 0.24% ) , so it's a well-diversified, large-cap index. Companies have to meet a strict criteria to be added to it -- they must be profitable, and they need to maintain a market capitalization of at least $22.7 billion, among other things.

The S&P 500 is weighted by market capitalization , so its largest constituents have a greater influence over its performance than the smallest. As a result, tech giants like Nvidia , Microsoft , and Apple have led the index higher over the last few years.

It has delivered a compound annual return of 10.5% since its inception in 1957, even after accoun

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