Do high valuations mean the market will crash?

Not necessarily, but they increase the risk of corrections. High valuations can persist for extended periods.

What is the best strategy to invest in VOO now?

Dollar-cost averaging (regular investing) may be suitable to mitigate the impact of volatility.

Is the Vanguard S&P 500 ETF Still Worth Buying Right Now?

Earnings growth hasn't been this strong in years. But some valuation measures are near all-time highs. Which narrative should investors choose?

June 5, 2026

2 min read

Source: Motley Fool

According to a report from Motley Fool, earnings growth for S&P 500 companies is at its strongest in years, boosting the appeal of index-tracking ETFs like the Vanguard S&P 500 ETF (ticker: VOO). However, some valuation metrics are approaching all-time highs, raising questions about whether now is a good time to buy.

Details

The report does not provide specific figures for earnings growth or valuation ratios, but highlights the dilemma investors face: strong corporate performance supports further upside, while high valuations increase the risk of a correction.

Context

The Vanguard S&P 500 ETF is one of the largest ETFs globally, with over $400 billion in assets. It tracks the index at a low cost (expense ratio 0.03%), making it a popular choice for passive investors.

What This Means for Investors

Investors need to balance strong earnings growth against high valuation risks. Dollar-cost averaging may be a suitable strategy to mitigate volatility.

Frequently Asked Questions

It is an ETF that tracks the S&P 500 index, known for low fees and broad diversification.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.