One of the most effective ways investors can put money to work in the stock market is not necessarily to go the active route and pick individual stocks. Instead, finding passive vehicles, such as exchange-traded funds (ETFs), can be a phenomenal way to position your portfolio for lasting success.

While there are many of these products on the market, investors might want to focus on those offered by Vanguard, a massive asset management firm that handles $11 trillion (as of July 31) and has been leading the industry for decades. It has a reputation for putting its clients’ needs first, and investors don’t need a large sum of capital to start.

Along the same vein, here’s the best Vanguard ETF to buy with $1,000 right now.

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This ETF gives investors exposure to the S&P 500

There’s no question that the S&P 500 is the bellwether index, with a total market capitalization of $52 trillion. It’s viewed as the premier gauge of how the stock market performs, as it contains 500 large and profitable U.S. companies. Many investors are certainly familiar with it.

Putting $1,000 to work in an ETF that tracks the S&P 500, such as the Vanguard S&P 500 ETF (VOO -2.68%), is a smart move by investors. Investors immediately achieve broad diversification without having to individually buy 500 different stocks. All sectors of the economy are represented, from technology and financial services to energy and consumer staples. Owning this ETF means investors are placing a bet that the American economy will continue on its path of innovation and growth. Historically, this has been the right call.

By buying the Vanguard S&P 500 ETF, investors also ensure they have exposure to the powerful artificial intelligence (AI) trend, which has been the key theme in the stock market in recent years. Trying to pick the winners early on can seem like a daunting task. This ETF will make sure there are a number of AI-powered businesses in the portfolio.

Investors likely care most about performance and fees

The first thought that investors considering an ETF might have is that the fund won’t produce adequate returns, at least not the same type of gains that come from picking individual stocks. This perspective is flawed, as the Vanguard S&P 500 ETF shows.

In the past decade, this ETF has generated a total return of 304% (as of Oct. 7). Had you invested $1,000 in it in October 2015, you’d have $4,043 today. This is a fantastic result.

What makes the situation even better is the low cost of owning the ETF. The Vanguard S&P 500 ETF carries an ultra-cheap expense ratio of just 0.03%. So, from a $1,000 asset base, only $0.30 goes to Vanguard in the form of fees on an annual basis. This helps to cover the firm’s various operational costs. It’s hard to beat the value proposition.

Data shows that the vast majority of active fund managers, professionals who are viewed as experts in the world of finance and investing, lag the S&P 500’s performance over a 10-year time horizon. However, that poor showing does not prevent them from charging fees that are well in excess of what the Vanguard S&P 500 ETF charges.

Future returns might not resemble the past

It would be wonderful if the Vanguard S&P 500 ETF generated the same kind of return over the next decade that it did in the past 10 years. If this were the case, then perhaps it’s a better idea to put much more than $1,000 to work if possible, depending on your personal finances.

But the truth is that no one knows what the future will hold, as returns could be higher or lower depending on various factors. Regardless, what matters is that investors act now and put money to work, as patience will be rewarded.