Should You Invest $1,000 In VOO Right Now?

The S&P 500 (SNPINDEX: ^GSPC) just hit another all-time high on enthusiasm around a potential resolution to the Iran war. The Vanguard S&P 500 ETF (NYSEMKT: VOO) continues to do the same and is now a $925 billion behemoth.

But investing in the S&P 500 right now isn’t a slam-dunk choice. Past de-escalations to the Iran conflict have proven to be tentative and nondurable. Inflation has risen significantly. The labor market has slowed considerably. In terms of valuations, U.S. stocks still trade well above their long-term average.

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But there are also good reasons to think that the rally isn’t finished yet.

Image source: Getty Images.

Earnings growth will continue to be the driver

While these potential economic concerns are important and shouldn’t be dismissed, long-term equity market performance is typically driven by corporate earnings. As long as earnings continue to grow, U.S. stocks should have the support that can keep pushing share prices higher.

That’s where we are now. The annualized earnings growth rate for the S&P 500 is expected to be 27.1% in Q1 2026. That would mark the sixth consecutive quarter of year-over-year double-digit growth and the best year-over-year growth rate since 2021. It’s tough to see stock prices falling too far when earnings are growing at that kind of clip.

The case for investing $1,000 in the Vanguard S&P 500 ETF right now is still strong. There are always concerns that investors should be aware of and consider. But the growth in corporate earnings is enough to outweigh them for the time being.

Should you buy stock in Vanguard S&P 500 ETF right now?

Before you buy stock in Vanguard S&P 500 ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $476,034!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,274,109!*

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