A Comprehensive Overview of Vanguard's S&P 500 ETFs
Understanding the performance and fees of Vanguard's S&P 500 ETFs is essential for those looking to invest in large-cap stocks. In this comprehensive overview, we will take a look at the Vanguard S&P 500 ETFs, their fees and performance, and how they compare to other ETFs.
For example, the Vanguard S&P 500 ETF has a 0.03% expense ratio, but the SPDR S&P 500 ETF Trust's expense ratio is 0.0945%. S&P 500 ETFs are considered low-cost invest, as the expense ratios are generally much lower than actively managed funds. In addition, the Vanguard S&P 500 ETF has an expense ratio of just 0.03%, which is one of the lowest among ETFs. Fees can take a significant chunk out of an invest’s returns, so choosing an ETF with a low expense ratio is important.
ETFs recently featured in the blog include: Vanguard S&P 500 ETF VOO, Vanguard Total Stock Market ETF VTI, iShares Core S&P 500 ETF IVV, Schwab U.S. Large-Cap ETF SCHX, and SPDR S&P 500 ETF Trust SPY. All of these ETFs have low expense ratios, making them a great option for those looking to invest in large-cap stocks.
If you owned $10,000 worth of Admiral-class shares in Vanguard's S&P 500 fund at the end of 2021, Vanguard says, Tesla's decline last year would have cost you about $70. That's a small price to pay for the potential returns that Vanguard's S&P 500 ETFs can offer.
The Vanguard S&P 500 Growth ETF is down 25.9% during the 2022 bear market -despite the fact that the top big-tech growth companies continue to outperform the broader market. This shows that the Vanguard S&P 500 ETFs are not immune to market volatility.
In fact, since the Vanguard Growth ETF was established in 2004, it's seen returns of more than 313% -- compared to the S&P 500's roughly 190%. This is likely due to the fact that it invest in some of the highest-returning stocks of the S&P 500.
A great mutual fund for tracking the S&P 500 cheaply is VFIAX. This fund has been around since November 2000 and has returned an annualized 12.5% since inception. Its low expense ratio of 0.04% makes it an attractive option for those looking to invest in the S&P 500 without paying too much in fees.
It has similar status in covering the small-cap Stock universe as the S&P 500 has for large-cap stocks. The Vanguard Russell 2000 ETF is low-cost and tracks 2000 of the smallest U.S. stocks. This ETF has a current expense ratio of 0.14%, which is still much lower than actively managed funds.
Finally, Vanguard's S&P 500 ETFs also offer sector-specific funds. These funds allow invest to invest in specific sectors instead of the entire S&P 500. Although the Vanguard S&P 500 ETF only contains large-cap companies (so it's not totally diversified), they span all 11 major sectors and offer exposure to a wide variety of industries.
In conclusion, Vanguard's S&P 500 ETFs are a great option for those looking to invest in large-cap stocks without paying too much in fees. They offer a variety of funds that track the S&P 500, as well as sector-specific funds that allow invest to invest in specific industries.
