After rising 34% in value since the start of 2023 (as of April 10), the S&P 500 has been in record territory recently. This has probably caught the attention of some people who are considering putting money to work in the stock market to get on track toward their long-term financial goals.

If you're a new investor, don't be intimidated by what may seem like a complicated endeavor. If you want solid investment returns, history says you should buy this magnificent exchange-traded fund (ETF).

Solid track record

Newbies should look no further than the Vanguard S&P 500 ETF (VOO 0.35%). This ETF provides exposure to the S&P 500, which is a collection of 500 large and profitable enterprises in the U.S. Owning this ETF means investors are essentially betting on the ongoing growth and innovation of the American economy, a historically sound perspective to have.

The Vanguard S&P 500 ETF has positions in all sectors. But the so-called "Magnificent Seven" businesses have a huge weighting, combined making up 29% of the ETF's total assets. Given their strong share price gains, this has been a positive trend in recent times. It's been worthwhile to own some of the most disruptive and dominant companies on Earth.

However, the Vanguard S&P 500 ETF also has tiny positions in much smaller stocks, like Hasbro, Whirlpool, and Comerica. The goal of owning this fund is to have broad diversification.

Since its inception in September 2010, the Vanguard S&P 500 ETF has generated a total return, a figure that includes dividends, of 511%. That translates to an annualized gain of 14.4%, turning a $1,000 initial cash outlay into more than $6,100 today. This is a fantastic return.

But investors should expect this return to revert back to the S&P 500's long-term historical average of about 10% per year. To be clear, this would still be a solid performance that can compound your portfolio over many years and decades.

Besides the potential for double-digit returns, what makes the Vanguard S&P 500 ETF a no-brainer buy for new investors is its extremely low cost. The annual expense ratio of just 0.03% means that for every $1,000 you put to work, just $0.30 goes toward fees. You keep more of your returns, which is definitely what you want.

Should you wait to buy?

There might be some concerns about buying the Vanguard S&P 500 ETF right now, particularly because it's near all-time highs. And with fears still swirling around about the possibility of a recession, it's understandable if investors are wondering whether or not they should wait for a pullback. This is rational thinking.

It's certainly tempting to want to try to successfully time the market, with the intention of buying at new lows and repeating the process. The track record for being able to do this correctly on a consistent basis isn't encouraging. Even if you missed the market's 10 best trading days, in an attempt to avoid the worst days, your return would be significantly lower than had you held through the ups and downs.

Therefore, I believe that even with the ETF in record territory, it's best to still consider putting money to work. I suggest dollar-cost averaging, a strategy that forces one to build valuable savings and investing habits. The result can be phenomenal.

Let's say you invested $1,000 in the Vanguard S&P 500 ETF a decade ago, with additional $100 allocations every month. Your portfolio value would now total $28,000. This is a fantastic outcome for a passive investment vehicle that can be fully automated.

New investors have a lot to be optimistic about. The Vanguard S&P 500 ETF is more than enough to help get you started.