Vanguard S&P 500 ETF Overview
Vanguard S&P 500 ETF (VOO) is a passively managed U.S. Equity Large Blend exchange-traded fund (ETF). Vanguard launched the ETF in 2010.
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 an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.
About Vanguard S&P 500 ETF (VOO)
There are 3 members of the management team with an average tenure of 2.55 years: Michelle Louie (2017), Nick Birkett (2023) and Aaron Choi (2023). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: S&P 500 TR USD index with a weighting of 100%. Vanguard S&P 500 ETF has 508 securities in its portfolio. The top 10 holdings constitute 32.2% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Vanguard S&P 500 ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Vanguard S&P 500 ETF has 0.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.3% There is 0.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard S&P 500 ETF has 0.2% of the portfolio in cash.
Assets Under Management
Vanguard S&P 500 ETF has a trailing dividend yield of 1.3%, which is equal to the 1.3% category average. The fund normally distributes its dividend income quarterly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
VOO Performance and Fees
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard S&P 500 ETF has a portfolio turnover rate of 2%, which indicates that it holds its assets around / 0.5 years. By way of comparison, the average portfolio turnover is 61% for the Large Blend category.
Recently, in the month of March 2024, Vanguard S&P 500 ETF returned 3.2%, which earned it a grade of C, as the Large Blend category had an average return of 3.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Vanguard S&P 500 ETF Grades
Year to date, the ETF has returned 10.5%, 0.8 percentage points better than the category, which translates into a grade of B. The fund has returned 29.8% over the past year (grade of B), 11.4% over the past three years (grade of B) and 15.0% per year over the past five years (grade of B) and 12.9% per year over the past 10 years (grade of B).
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