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- Understanding the Vanguard S&P 500 ETF (VO
- Fund Snapshot
- The Vanguard S&P 500 ETF's Largest Holdings
- Equity Sector Diversification
- How to Invest in the Vanguard S&P 500 ETF
- Vanguard S&P 500 Dividend History and Yields
- What Is the Vanguard S&P 500 ETF?
- How Many Stocks Are Present in the Vanguard S&P 500 Index ETF?
- Does the Vanguard S&P 500 Index Fund Pay Dividends?
- Can I Buy Fractional Shares of the Vanguard S&P 500 ETF?
- Will the Vanguard S&P 500 ETF Split?
- The Bottom Line
The Vanguard S&P 500 ETF ( VOO) is a fund that invests in the stocks of some of the largest companies in the United States. VOO is an exchange-traded fund (ETF) that tracks the S&P 500 index by owning all of the equities within the S&P 500. The S&P 500's investment return is considered a gauge of the overall U.S. stock market.
An index is a hypothetical portfolio of stocks or investments representing a specific portion of the market or the entire market. The S&P 500 and the Dow Jones Industrial Average (DJIA) are both examples of broad-based indexes. Investors cannot invest in an index. Instead, they can invest in funds that mirror an index.
The Vanguard S&P 500 ETF tracks the S&P 500 index by investing in all of the stocks in the S&P 500.
The ETF is comprised of the equities of large U.S. corporations.
The Vanguard S&P 500 ETF appeals to many investors because it's well-diversified.
The fund is heavily weighted in information technology, health care, and consumer discretionary.
The S&P 500 represents 500 of the largest U.S. companies. The goal of the Vanguard S&P 500 ETF is to track the returns of the S&P 500 index.
VOO appeals to investors because it's well-diversified and is made up of equities of large corporations—called large-cap stocks. Large-cap stocks tend to be more stable with a solid track record of profitability as opposed to smaller companies. Dividends are typically cash payments paid to investors by companies as a reward for owning their company's stock.
Some of the key characteristics of the Vanguard S&P 500 (as of Oct. 3, 2022) include: 1
Note that the SEC yield is a standardized metric mandated by the Securities and Exchange Commission (SEC), which provides investors with a common yardstick for comparing the interest earned and dividend yield of various funds.
Listed below are the top 10 holdings of the VOO along with their portfolio weightings, which in total make up 30.4% of the fund's portfolio. 1
Many funds contain equities from several sectors within the economy. A sector is a large grouping of companies organized by similar business activities, such as a product or service.
For example, the consumer staples sector represents essential goods, such as toilet paper, while the consumer discretionary sector represents nonessential goods, such as luxury items. Below is the weighting of each sector within the Vanguard S&P 500 ETF. 2
It is important to remember that shares for ETFs trade just like ordinary stock—meaning you can purchase or sell them anytime during trading hours. You can purchase shares for the Vanguard S&P 500 ETF through your broker-dealer or an investing app such as Robinhood. It is also possible to own fractional shares of the ETF by specifying the purchase amount in dollars.
The majority of broker-dealers and apps do not charge purchase commission fees. However, a surefire way to avoid paying commission fees is to open a brokerage account with the fund provider, Vanguard, on its website. The caveat of such a move is that your portfolio universe may become restricted to products offered by Vanguard unless you open accounts with other firms or providers. Unlike its index funds, Vanguard does not have minimum investment amounts for its ETFs.
Here is a breakdown of the quarterly distributions the Vanguard S&P 500 ETF has paid. 3
Investors looking for a low-cost, low-maintenance fund that provides them with access to U.S. equity markets might opt for the Vanguard S&P 500 ETF. However, each investor must consider the level of risk they're willing to take when investing—called risk tolerance. Also, how long the money will be invested in the market is important to consider.
The Vanguard S&P 500 ETF (VOO) is a fund that invests in the stocks of some of the largest companies in the United States. It tracks and mirrors the performance of the S&P 500 index.
The Vanguard S&P 500 Index ETF had 503 stocks in its portfolio as of Q3 2022. 4
Yes, the Vanguard S&P 500 pays quarterly dividends, and as of July 2022, yielded 1.55%. 4
Vanguard does offer the ability to purchase fractional shares for VOO on its platform. But you can purchase fractional shares of the ETF on other investing platforms, such as Schwab and Robinhood.
The Vanguard S&P 500 (VOO) ETF has undergone a split just once in its lifetime. It occurred on Oct. 24, 2013, when its share price was falling. The company conducted a 1-for-2 reverse split, meaning it combined every two shares held by its investors into a single one. The reverse split reduced the number of shares in circulation and doubled the ETF...
Investing in the Vanguard S&P 500 ETF is a passive investment strategy in which the fund tracks the performance of the S&P 500. In other words, the fund's management team is not actively trading by buying and selling stocks, which helps maintain the lower expense ratio.
Investing in Vanguard's VOO is a low-stress way for investors to access the U.S. equity market. However, there is the risk of loss as with any investment, and investors should consult a financial professional before investing in the Vanguard S&P 500 ETF.
- Dan Moskowitz
Jun 11, 2012 · About Vanguard S&P 500 ETF. The investment seeks to track the performance of the Standard & Poor‘s 500 Index that measures the investment return of large-capitalization stocks. The fund employs ...
These four fund managers and 30 analysts figured out how to consistently beat the S&P 500 Jul. 27, 2018 at 7:10 a.m. ET by Philip van Doorn Barron's Sizing Up Fidelity and Vanguard Managers
People also ask
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The fund managers seek to replicate the performance of the S&P 500, with the major difference being the fund’s expense ratio. Role in Portfolio The fund is a core large-cap holding in a portfolio.