S&P 500's Shifting Landscape: Why VTI is a Long-Term Winner

The S&P 500 has returned about 11% annually since 1958. To replicate this performance over the next 30 years, investors may want to consider owning an ETF that changes with the market.

A look at the largest holdings in the S&P 500 in 1996 shows how much the landscape has shifted. The top 10 holdings back then included well-known companies like Coca-Cola, ExxonMobil, and Intel. However, many of these names are no longer among the index's top performers.

The Vanguard Total Stock Market ETF (VTI) offers a broad exposure to the US stock market, making it an attractive choice for long-term investors. Since 1958, the S&P 500 has returned an average of 11% per year, but this is due in part to the changing composition of the index.

The ETF does not attempt to pick individual winners, instead increasing its exposure to emerging companies as their market capitalization grows. This approach can provide investors with broader diversification and potentially better returns over time.