Block (NYSE: XYZ) has surged by over 7% this morning after the S&P Dow Jones Indices announced that this company is joining the S&P 500 Index effective Wednesday. This has pushed the stock above its 200-day moving average for the first time since spring and has option desks buzzing that it could break above $80.

Block shares surge after joining S&P 500, as fintech firm gains institutional traction and bullish forecasts from Wall Street analysts.

The Vanguard S&P 500 ETF ( VOO -0.08%) is one Buffett has recommended by name in the past, and it's popular for its extremely low cost. According to Wall Street analyst Tom Lee from Fundstrat Global Advisors, the S&P 500 could soar by 139% by 2030, so investors who buy the Vanguard ETF today could earn a very nice return over the next five years.

Block, the financial technology company formerly known as Square, will join the index before the start of trading on Wednesday, according to S&P Dow Jones Indices, which oversees the S&P 500.

Jack Dorsey’s Block Inc. is set to join the S&P 500 index, a milestone that underscores the growing influence of digital payments and crypto in mainstream finance.

Key Points S&P 500 index funds have proven to be solid long-term investments. The Schwab U.S. Dividend ETF offers a higher current dividend yield. Dividend growth stocks like the ones SCHD holds have historically delivered higher returns with less volatility compared to the S&P 500.

That’s the percentage of S&P 500 companies that have reported second-quarter earnings higher than Wall Street expected, according to a FactSet report released Friday. The figure, which only counts companies that have already reported,

Block (XYZ) stock surged as much as 8.9% in Monday morning trading after S&P Dow Jones Indices said it will add the Cash App parent to the S&P 500 Index, replacing Hess (HES), which is set to be acquired by Chevron.

Investing in an ETF that tracks the S&P 500 gives you exposure to 500 or so of the largest and best companies on the market, essentially giving you the opportunity to grow your money along with the market. The large number of stocks, plus the index's regular changing of its components based on how they grow or shrink, minimizes your risk.