The Stock Watcher
Sign InSubscribe
Stocks

The Vanguard S&P 500 ETF (VOO) - What You Need to Know

 
Share this article

Investing in VOO - what you need to know

Description: Graph displaying the performance of the Vanguard S&P 500 ETF (VOO) over the past year.

,"Vanguard Total Stock Market ETF (AMEX:VTI) has a slightly higher expense ratio ... For investors who want to invest in the U.S. Stock market,..." VOO is an ETF launched and managed by The Vanguard Group, Inc. It offers exposure to Stock of mega and large-cap companies in the U.S. and is designed to track the performance of the S&P 500. This ETF is a popular choice for investors interested in gaining exposure to the large-cap U.S. Stock market. VOO has a low expense ratio and a high dividend yield, making it an attractive option for investors seeking to diversify their portfolios.

If we break down the relative shares, SPY, IVV, and VOO alone account for 83.6% of the total ETF asset holdings in the U.S. It is no wonder why many investors opt for these ETFs when invest in the U.S. Stock market.

The S&P 500 is one of the primary U.S. Stock market indexes and is a favored invest by both retail investors and financial advisors alike. VOO tracks the performance of the S&P 500, giving investors an easy way to gain exposure to the index. In addition, since VOO is an ETF, it offers investors the benefit of diversification without having to purchase individual Stock.

VOO has a low expense ratio of only 0.03%, making it one of the least expensive ETFs on the market. It also has a high dividend yield of 1.99%, which is higher than the average dividend yield of the S&P 500. VOO is a great option for investors who want to diversify their portfolios and earn a higher dividend yield.

Through his holding company Berkshire Hathaway, Warren Buffett invest in only two ETFs: the Vanguard S&P 500 ETF (VOO -1.39%) and the SPDR S&P 500 ETF (SPY -1.04%). This is a testament to the quality of the VOO ETF.

For the Vanguard S&P 500 ETF (AMEX: VOO), we found that the implied volatility is slightly lower than the average for the S&P 500. This means that VOO is less risky than the S&P 500, making it a better option for conservative investors.

Last year, VOO Stock fell 18.2%, closely tracking the performance of the S&P 500. However, things are looking up in 2023 as the ETF is up 11.9% year-to-date. This is a sign that the markets are improving and that investors are feeling more confident.

Vanguard Total Stock Market ETF (AMEX:VTI) has a slightly higher expense ratio of 0.04%, but it also offers a higher dividend yield of 2.13%. For investors who want to invest in the U.S. Stock market, VTI is a good choice.

Around 80% of VTI is weighted toward the Stock held in VOO, making VTI a good alternative to VOO. However, VTI also offers exposure to small-cap and mid-cap Stock, which can give investors a more diversified portfolio.

I have no business relationship with any company whose Stock is mentioned in this article. Like (2) Share

Labels:
vanguards&p 500etfvoovtistocksdiversificationexpense ratiodividend yieldwarren buffettimplied volatilityAMEX:VOOAMEX:VTI
Share this article