Why is S&P 500 ETF easier to make money than individual stock trading?? It can maintain an annualized return of 15%

By diversifying risks + long-term compound interest + low cost + peace of mind, avoiding individual stock blowups/stock selection difficulties, it is highly likely to outperform most individual stock investors, and the advantage is amplified with 1 million capital.

1. Diversify risks and avoid black swans: VOO covers 500 leading U.S. stocks, a single stock blowup (like Luckin Coffee, Silicon Valley Bank) has minimal impact on net value; buying individual stocks, one blowup could lose 30%-80%, and 1 million capital has low fault tolerance.

2. High long-term win rate, no need to bet on individual stocks: S&P 500 constituents are high-quality U.S. companies, with long-term annualized returns of about 10% and strong compound interest effect; individual stocks require precise stock selection + timing, which most people can't consistently get right, and a single mistake with 1 million capital could lead to heavy losses.

3. Low cost saves big money, compound interest isn't eroded: VOO fee is only 0.03%, annual fee is $300; buying individual stocks requires multiple commissions, stamp duties (partially), and frequent trading costs can eat up a lot of returns, the cost difference with 1 million capital is significant in the long run.

4. No need to monitor the market and waste energy, avoid emotional trading: VOO doesn't require analyzing individual stock earnings or sentiment, just hold; individual stocks require frequent tracking, and 1 million capital is prone to panic/greed-driven buying high and selling low, amplifying losses.

5. Naturally balanced positions, avoiding concentration risk: It's hard to achieve reasonable diversification with 1 million in individual stocks (too many to research, too few leads to high concentration), VOO is already market-cap weighted and automatically rebalances, survival of the fittest.