Should You Buy the Vanguard S&P 500 ETF With the Stock Market at All-Time Highs? History Offers a Clear Answer

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track the performance of the index.10 stocks we like better than Vanguard S&P 500 ETF ›The S&P 500 is a stock market index made up of 500 companies from 11 different sectors of the economy. It's currently trading at a record high thanks to a year-to-date gain of 17%, which is far better than its average annual return of 10.5% since it was established in 1957.Accelerated returns have been common over the last few years, as powerful tech trends like artificial intelligence (AI) create significant amounts of value for some of the largest companies in the index.The Vanguard S&P 500 ETF (NYSEMKT: VOO) is an exchange-traded fund (ETF) that tracks the performance of the S&P 500 by investing in the same stocks and maintaining similar weightings. Should investors buy it with the index at an all-time high? History offers a clear answer.Image source: Getty Images.The S&P 500 is weighted by market capitalization, so its largest holdings have a greater influence over its performance than the smallest. Therefore, information technology is the largest sector in the index by far because it's home to the world's three largest companies, Nvidia, Microsoft, and Apple, which have a combined value of $12.9 trillion.Below is a list of the top five sectors in the S&P 500, along with their portfolio weightings, and some of the noteworthy stocks within them.S&P 500 SectorSector WeightingNoteworthy StocksInformation technology35.6%Nvidia, Microsoft, AppleFinancials13%Berkshire Hathaway, JPMorgan Chase, VisaConsumer discretionary10.4%Amazon, Tesla, Home DepotCommunication services10.2%Alphabet, Meta Platforms, NetflixHealthcare9.1%Eli Lilly, Johnson & Johnson, Intuitive SurgicalData source: State Street. Sector weightings are accurate as of Oct. 27, 2025, and are subject to change.The remaining six sectors in the S&P 500 are industrials, consumer staples, energy, utilities, real estate, and materials, so the index is clearly quite diversified. However, it's impossible to ignore the outsized influence of the tech industry.Below is a chart showing the performance of the S&P 500 information technology sector since Jan. 1, 2023 (which is when the AI boom started gathering momentum), compared to the performance of the S&P 500 overall, and the performance of the S&P 500 excluding the information technology sector. As you can see, returns would have been significantly lower without technology stocks.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,847.76 +7.56 (+0.11%)Dow 3047,348.03 -214.84 (-0.45%)Nasdaq23,809.82 +84.86 (+0.36%)Russell 20002,470.02 -9.36 (-0.38%)VIX17.26 -0.18 (-1.03%)Gold4,014.40 +17.90 (+0.45%)PortfolioSign in to access your portfolioSign inTop gainersCIFR Cipher Mining Inc. 22.80 +4.15 (+22.23%)AMKR Amkor Technology, Inc. 38.01 +5.73 (+17.74%)IDXX IDEXX Laboratories, Inc. 723.00 +93.49 (+14.85%)KVUE Kenvue Inc. 16.41 +2.04 (+14.20%)FRPT Freshpet, Inc. 55.31 +6.10 (+12.40%)Top losersQURE uniQure N.V. 34.91 -32.79 (-48.43%)UUUU Energy Fuels Inc. 17.65 -2.86 (-13.94%)VERX Vertex, Inc. 19.59 -3.32 (-14.48%)KMB Kimberly-Clark Corporation 103.07 -16.64 (-13.90%)CDE Coeur Mining, Inc. 14.95 -2.23 (-12.96%)Most activeKVUE Kenvue Inc. 16.41 +2.04 (+14.20%)NVDA NVIDIA Corporation 207.70 +5.21 (+2.57%)CIFR Cipher Mining Inc. 22.80 +4.15 (+22.23%)BITF Bitfarms Ltd. 4.0900 +0.1200 (+3.02%)ONDS Ondas Holdings Inc. 6.12 -0.32 (-4.97%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 107,297.54 -2,730.26 (-2.48%)KMB Kimberly-Clark Corporation 103.15 -16.56 (-13.83%)IREN IREN Limited 68.21 +7.46 (+12.27%)KVUE Kenvue Inc. 16.47 +2.10 (+14.58%)NVDA NVIDIA Corporation 207.06 +4.57 (+2.26%)Top economic events