Vanguard S&P 500 ETF. Tracks performance of the S&P 500 Index. Yahoo! Finance
|Overnight funding - Buy||-0.0368%||Overnight funding - Sell||-0.0364%|
|Initial margin||3.50%||Maintenance margin||1.75%|
|Name||Sell||Sell button / Change||Buy||Change Change||Change Change||Change Change|
Negative Balance Protection
VOOVanguard S&P 500 ETF
This ETF tracks the S&P 500 Index, one of the most famous benchmarks in the world and one that tracks some of America’s largest companies. As a result, investors should think of this as a play on mega and large cap stocks in the American market. These securities are usually known as ‘Blue Chips’ and are some of the most famous and profitable companies in the country, including well known names such as ExxonMobil, Apple, IBM, and GE. The fund is probably one of the safest in the equity world as the companies on this list are very unlikely to go under unless there is an apocalyptic event in the economy. However, these securities are unlikely to grow very much either as they are already pretty large and have probably seen their quickest growing days in years past, but most do pay out solid dividends which should help to ease the pain of this realization. Overall, VOO is a quality choice for investors seeking broad mega and large cap exposure and it is more diversified than most, containing just over 500 securities in total. As a result, this fund could serve as a building block for many portfolios making it an excellent choice for many buy and holders, especially for those looking to keep costs at a minimum.
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.
Latest VOO News
Oct 18 / GuruFocus News - Paid Partner Content
Oct 15 / GuruFocus News - Paid Partner Content
The performance data shown in tables and graphs on this page is calculated in USD of the fund/index/average (as applicable), on a Bid To Bid / Nav to Nav basis, with gross dividends re-invested on ex-dividend date. Past performance is not necessarily a guide to future performance; unit prices may fall as well as rise.
All managed funds data located on FT.com is subject to the FT Terms & Conditions
All content on FT.com is for your general information and use only and is not intended to address your particular requirements. In particular, the content does not constitute any form of advice, recommendation, representation, endorsement or arrangement by FT and is not intended to be relied upon by users in making (or refraining from making) any specific investment or other decisions.
All data shown on this page, unless noted otherwise is Data Source and Copyright: Morningstar, Inc. 2021
All Rights reserved
© 2021 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Pricing for ETFs is the latest price and not "real time". Share price information may be rounded up/down and therefore not entirely accurate. FT is not responsible for any use of content by you outside its scope as stated in the FT Terms & Conditions.
A Look at Vanguard's S&P 500 ETF
The Vanguard S&P 500 ETF (VOO) is a fund that invests in the stocks of some of the largest companies within the United States. Vanguard's (VOO) is an exchange traded fund (ETF) that tracks the S&P 500 index by owning all of the equities within the S&P.
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, per se. Instead, they can invest in funds that mirror an index by owning the stocks within the index.
The Vanguard S&P 500 ETF is a popular and reputable index fund. The S&P 500's investment return is considered a gauge of the overall U.S. stock market.
- The Vanguard S&P 500 ETF (VOO) track's the S&P 500 index by investing in all of the stocks within the S&P 500.
- The Vanguard S&P 500 ETF is appealing for many investors since it's well-diversified and comprised of equities of large U.S. corporations.
- The Vanguard S&P 500 ETF offers low fees since the fund's management team is not actively trading by buying and selling stocks.
Understanding the Vanguard S&P 500 ETF (VOO)
The S&P 500 represents 500 of the largest U.S. companies. The goal of the Vanguard S&P 500 ETF (VOO) is to track the returns of the S&P 500 index.
The VOO is appealing for many investors since it's well-diversified and comprised of equities of large corporations—called large-cap stocks. Large-cap stocks tend to be more stable with a solid track record of profitability versus smaller companies.
The broad-based, diversified portfolio of stocks within the fund can help lessen, but not eliminate, the risk of loss in the event of a market correction. Some of the key characteristics of the Vanguard S&P 500 (as of August 31, 2021) include:
- Assets under management (AUM): $805.4 billion
- Expense ratio: 0.03%
- SEC Yield (30-day): 1.23%
- One-year performance: 31.05%
- Performance since the inception date of September 07, 2010: 16.10%
- Minimum investment: The price of one share
Please note that the SEC yield is a standardized metric mandated by the Securities Exchange Commission (SEC), which provides investors with a common yardstick for comparing the interest earned and dividend yield of various funds. Dividends are typically cash payments paid to investors by companies as a reward for owning their company's stock.
The Vanguard S&P 500 ETF's Largest Holdings
Listed below are the top ten holdings of the VOO along with their portfolio weightings, which in total make up nearly 30% of the fund's portfolio.
|Top Ten Holdings of Vanguard S&P 500 ETF (VOO)|
|Berkshire Hathaway Inc.||1.40%|
|JPMorgan Chase & Co.||1.30%|
|Johnson & Johnson||1.20%|
Equity Sector Diversification
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 non-essential goods, such as luxury items. Below is the weighting of each sector within the Vanguard S&P 500 ETF.
|Equity Sector Diversification for Vanguard S&P 500 ETF (VOO)|
|Equity Sector||Sector Weighting|
The Risk of Loss from Dangerous Theories
Think back to the real estate boom of the mid-2000s. A common theory as to why real estate prices would appreciate forever was: “They’re not building more land.” This theory meant that supply would be limited, which would lead to increased demand and continuously rising prices.
Unfortunately, many investors were unprepared for the impending real estate crash, which led to the 2007-2008 Financial Crisis in part due to loose lending practices.
Now consider a similar theory with U.S. stocks: “It’s the only place to put your money right now.” An added incentive for many investors has been that if everyone sees U.S. equities as the only place to put their money, it will continue to drive equity prices higher.
In other words, it's essential that investors not become complacent in thinking the market can only go up. With investing in the stock market, there is a risk of market downturns and corrections, which can lead to a significant decline in an investor's portfolio and financial loss.
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 should be considered.
Risk Tolerance and Time Horizon
Younger investors might opt to invest all their money in the equity markets since their portfolio has many years to make up for investment losses due to market corrections. Conversely, investors who are at or near retirement might opt for low-risk stocks and securities.
Risk-averse investors might buy U.S Treasury bonds and bills. Although the yield or interest is not always attractive, Treasuries are considered risk-free assets since they're backed by the U.S. Treasury. As a result, investors can't lose their principal or initial investment if the bond is held until its maturity or expiration date.
Rising and Falling Prices
Some investors concerned about the possibility of deflation, which is a decline in the prices of goods in an economy, may leave their money in cash. Although it may appear counterintuitive, if deflation occurs, the cash value in dollars can increase.
Conversely, some investors might be concerned about inflation, which is the pace at which prices increase in an economy. As a result, investors might invest in the stock market, including the Vanguard S&P 500 ETF, hoping to achieve a higher return rate than inflation.
Other investors might invest in securities that adjust for rising prices in the economy. For example, Treasury inflation-protected securities (TIPS) are designed to adjust in price as inflation increases, protecting investors so that they never receive less than the original amount invested.
The Bottom Line
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 doesn't own shares of VOO.
You will also be interested:
- Cute animal family drawings
- Oregon governor budget
- Studio knit heart pattern
- Free download powerpoint template
- Boss deer blinds
- Skse nexus
- Fs19 telehandlers
- Heavy duty hinge
- 2014 mustang starter location
- Daikin one plus thermostat
- Small teal wall decor