The Fed Meets in Two Weeks. Here's the ETF I'd Buy Today Regardless of What It Does.
2026-09-05 13:22
•Matt Frankel, Cfp® •The Motley Fool
•••• • Axe Cap view
Ignore the Fed Noise, Buy the S&P 500 via VOO
Despite September’s Fed meeting uncertainty, the Vanguard S&P 500 ETF offers a disciplined, long-term play.
The Federal Reserve’s next interest rate decision will draw headlines, but trying to time the US market around it is a mug’s game. History tells us the S&P 500, even bought at peak levels, has handed investors close to 12% annual returns over 35 years. For South African investors, this means stepping into the USD/ZAR pair paid off even if the timing was rough, given the rand’s long-term volatility. VOO, with its minuscule fees and broad US tech exposure, remains a solid way to access that growth. Of course, if the Fed surprises with aggressive hikes or the US enters a deep recession, returns could stall or dip, dragging the rand weaker and amplifying losses in ZAR terms. But patience and a steady hand tend to pay off more than short-term speculation. this is just our opinion and not financial advice
Buy VOO as a core USD asset alongside a hedged rand exposure to smooth volatility. Avoid trying to trade Fed events or chase cheap valuations in local speculative counters right now.
- VOO
- USD/ZAR
- Aggressive Fed tightening triggering a US recession
- Rand weakness amplifying losses for local investors
6/10
With uncertainty surrounding the Federal Reserve's September interest rate decision, the article recommends the Vanguard S&P 500 ETF as a solid long-term investment regardless of market conditions. Historical data shows the S&P 500 has delivered an 11.9% average annual return from 1988-2023, and even buying at all-time highs has produced 13.4% average returns, suggesting that timing the market is less important than long-term investing discipline.
Our take is based on reporting first published by The Motley Fool.