Vanguard S&P 500 ETF

Tracks the S&P 500 Index — the 500 largest U.S. publicly traded companies. The most widely followed equity benchmark in the world.

Why This Week?

VOO just made history: the first ETF ever to surpass $1 trillion in assets under management. It's not the most exciting pick — it's the most important one. With a 0.03% expense ratio, 15+ year annualized returns of ~15.7%, and instant exposure to America's 500 largest companies, VOO is the single most popular investment vehicle on the planet. Whether you're building a core portfolio, benchmarking your strategy, or just getting started investing — VOO is the gold standard that everything else is measured against.

Key Metrics

YTD Return

~10%

1Y Return

~26%

10Y Annualized

~15.7%

Expense Ratio

0.03%

Holdings

~505

AUM

$1.05T

Top Holdings

8 holdings shown. Weights are approximate.

#NameWeight

NVDANVIDIA

7.89%

AAPLApple

7.04%

MSFTMicrosoft

5.13%

AMZNAmazon

4.07%

GOOGLAlphabet (A)

3.40%

AVGOBroadcom

3.26%

METAMeta Platforms

2.13%

TSLATesla

1.88%

Pros & Cons

Strengths

Ultra-low 0.03% expense ratio — among the cheapest investments in the world
$1+ trillion in AUM — first ETF ever to reach this milestone
Instant diversification across ~505 of America's largest companies
Proven 10-year annualized return of ~15.7%
Simple, transparent strategy tracking the world's most followed index

Risks & Weaknesses

Heavy tech concentration — top 10 holdings (~39%) are mostly tech companies
Only U.S. large-cap stocks — no international, small-cap, or mid-cap exposure
Low dividend yield (~1.05%) — not ideal for income investors
Market-cap weighting means buying more of what's already expensive
Cannot outperform the S&P 500 by definition
Fully exposed to U.S. market downturns with no hedging

Alternatives Comparison

ETF	Name	TER	Focus
VOOThis Week	Vanguard S&P 500 ETF	0.03%	Tracks the S&P 500 Index — the 500 largest U.S. publicly traded companies. The most widely followed equity benchmark in the world.
SPY	SPDR S&P 500 ETF Trust	0.09%	Oldest S&P 500 ETF, highest liquidity, preferred by active traders
IVV	iShares Core S&P 500 ETF	0.03%	Nearly identical to VOO, iShares brand, same ultra-low cost
SPLG	SPDR Portfolio S&P 500 ETF	0.02%	Lowest cost S&P 500 ETF at 0.02%, smaller AUM

💬 Frequently Asked Questions

A combination of massive passive investing inflows, strong S&P 500 performance, Vanguard's sterling reputation as a low-cost leader, and the industry-leading 0.03% expense ratio. It surpassed SPY and IVV in June 2026 to become the world's largest ETF.

For long-term buy-and-hold investors, VOO (or IVV) is better due to its 0.03% vs 0.09% expense ratio — that difference compounds significantly over decades. For active traders needing maximum liquidity and tightest bid-ask spreads, SPY remains the standard.

The top 10 holdings represent ~39% of the fund and are mostly tech companies. This reflects the actual market-cap composition of the S&P 500, not a deliberate bet. Investors who want to reduce concentration should pair VOO with value-tilted or equal-weight funds like RSP.

VOO tracks only the S&P 500 (~505 large-caps), while VTI tracks the entire U.S. stock market (~3,600+ holdings including mid and small-caps). Historically their returns are nearly identical since large-caps dominate market performance, but VTI provides marginally broader diversification.

Approximately 1.04-1.10% as of June 2026, paid quarterly. This is relatively low because many top holdings (NVDA, AMZN, META, TSLA) pay minimal or no dividends. For higher income, consider pairing VOO with SCHD or VYM.

Absolutely! VOO has been in our backtester since inception (2010). You can compare it against any combination of ETFs, test different allocation strategies, or use it as a benchmark for your custom portfolios.

Want to Explore Further?

VOO launched recently, so try backtesting SMH or SOXX as semiconductor proxies, or explore our ETF database for alternatives.

Backtest SMH + SOXX ETF Explorer

Disclaimer: ETF of the Week is educational content only. It is not investment advice, a recommendation to buy or sell, or an endorsement of any fund. Past performance does not guarantee future results. Always do your own research and consult a financial advisor before investing.