Index funds like Vanguard's ETFs outperform most active managers, making them smart choices for investors.

In 2025, the Vanguard S&P 500 ETF gained 17.8%, outperforming 79% of U.S. large-cap active managers who underperformed the S&P 500. This trend highlights the difficulty of stock picking, even for professionals with extensive resources. Experts, including Warren Buffett, recommend that most investors choose low-cost index funds like Vanguard's ETFs for broad market exposure and better long-term results. This approach reduces the risk and effort of picking individual winners and aligns with proven investment strategies.