A Look at Vanguard S&P 500 ETF | Global Online Money

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The Vanguard S&P 500 ETF (VOO) is a fund that invests within the shares of a few of the largest corporations in the US. VOO is an trade traded fund (ETF) that tracks the S&P 500 index by proudly owning the entire equities throughout the S&P 500. The S&P 500’s funding return is taken into account a gauge of the general U.S. inventory market.

An index is a hypothetical portfolio of shares or investments representing a particular portion of the market or your complete market. The S&P 500 and the Dow Jones Industrial Common (DJIA) are each examples of broad-based indexes. Traders can’t spend money on an index. As an alternative, they’ll spend money on funds that mirror an index.

Key Takeaways

The Vanguard S&P 500 ETF (VOO) tracks the S&P 500 index by investing in the entire shares within the S&P 500.
The Vanguard S&P 500 ETF is interesting to many buyers as a result of it is well-diversified and comprised of the equities of huge U.S. companies.
The Vanguard S&P 500 ETF presents low charges as a result of the fund’s administration crew isn’t actively buying and selling, as an alternative simply mirroring the S&P 500.

Understanding the Vanguard S&P 500 ETF (VOO)

The S&P 500 represents 500 of the most important U.S. corporations. The purpose of the Vanguard S&P 500 ETF (VOO) is to trace the returns of the S&P 500 index.

VOO appeals to buyers as a result of it is well-diversified and is made up of equities of huge companies—known as large-cap shares. Giant-cap shares are typically extra steady with a strong observe file of profitability versus smaller corporations. Dividends are sometimes money funds paid to buyers by corporations as a reward for proudly owning their firm’s inventory.

The broad-based, diversified portfolio of shares throughout the fund will help reduce however not eradicate the danger of loss within the occasion of a market correction.

Fund Snapshot

Among the key traits of the Vanguard S&P 500 (as of mid-2022) embody:

VOO
Expense Ratio	0.03%
Property (AUM)	$710 Billion
Variety of Holdings	503
Turnover Fee	2.3%
SEC Yield	1.62%
P/E Ratio	18.5x
P/B Ratio	3.5x
Avg. Each day Quantity	5.2 million shares
Inception Date	09/07/2010
Annualized efficiency since inception	14.03%

Observe that the SEC yield is a standardized metric mandated by the Securities and Change Fee (SEC), which supplies buyers with a standard yardstick for evaluating the curiosity earned and dividend yield of assorted funds.

The Vanguard S&P 500 ETF’s Largest Holdings

Listed under are the highest 10 holdings of the VOO together with their portfolio weightings, which in complete make up 30.4% of the fund’s portfolio.

Prime 10 Holdings of the Vanguard S&P 500 ETF (VOO)
Holdings	Proportion
Apple Inc.	6.5%
Microsoft Corp.	6.0
Alphabet (GOOG + GOOGL)	3.9
Amazon	2.9
Tesla Inc.	1.8
Berkshire Hathaway	1.5
UnitedHealth Group	1.5
Johnson & Johnson	1.5
Nvidia	1.2
Meta (FB)	1.2

Information as of June 30, 2022

Fairness Sector Diversification

Many funds include equities from a number of sectors throughout the economic system. A sector is a big grouping of corporations organized by related enterprise actions, reminiscent of a services or products.

For instance, the buyer staples sector represents important items, reminiscent of bathroom paper, whereas the buyer discretionary sector represents nonessential items, reminiscent of luxurious gadgets. Under is the weighting of every sector throughout the Vanguard S&P 500 ETF.

Fairness Sector Diversification for the Vanguard S&P 500 ETF (VOO)
Fairness Sector	Sector Weighting
Info Expertise	26.8%
Healthcare	15.2
Financials	10.8
Client Discretionary	10.5
Communication Companies	8.9
Industrials	7.8
Client Staples	7
Vitality	4.4
Utilities	3.1
Actual Property	2.9
Supplies	2.6

Information as of June 30, 2022

Learn how to Put money into the Vanguard S&P 500 ETF

You will need to keep in mind that shares for ETFs commerce identical to strange inventory—that means you should purchase or promote them anytime throughout buying and selling hours. You should buy shares for the Vanguard S&P 500 ETF by means of your broker-dealer or an investing app reminiscent of Robinhood. Additionally it is attainable to personal fractional shares of the ETF by specifying the acquisition quantity in {dollars}.

Nearly all of broker-dealers and apps don’t cost buy fee charges. Nevertheless, a surefire solution to keep away from paying fee charges is to open a brokerage account with the fund supplier, Vanguard, on its web site. The caveat of such a transfer is that your portfolio universe could change into restricted to merchandise supplied by Vanguard except you open accounts with different companies or suppliers. In contrast to its index funds, Vanguard doesn’t have minimal funding quantities for its ETFs.

Although you might not find yourself paying commissions to buy the inventory, there are different bills baked into the fund’s operations. The VOO ETF has annual working bills of 0.03%.

There are additionally charges for portfolio turnover. Which means that the fund supervisor incurs bills every time they reconstitute the portfolio by shopping for or promoting securities, thereby inflating the general bills. The portfolio turnover charge for the fund was 2.3% in 2021. Regardless of the charges, nonetheless, the Vanguard S&P 500 stays one of many least expensive and most accessible methods to spend money on the S&P 500.

Vanguard S&P 500 Dividend Historical past and Yields

Here’s a breakdown of the quarterly distributions the Vanguard S&P 500 ETF has paid.

VOO Dividend Historical past
12 months/ Dividend Quantity	1st Quarter	2nd Quarter	third Quarter	4th Quarter
2013	—	$0.369	$0.786	$0.914
2014	$0.779	$0.809	$0.876	$1.026
2015	$0.984	$0.902	$0.953	$1.092
2016	$1.002	$0.953	$0.883	$1.296
2017	$0.998	$1.01	$1.176	$1.184
2018	$1.084	$1.157	$1.207	$1.289
2019	$1.455	$1.386	$1.301	$1.429
2020	$1.178	$1.433	$1.309	$1.383
2021	$1.263	$1.333	$1.308	$1.533
2022	$1.374	$1.4321	—	—

Traders on the lookout for a low-cost, low-maintenance fund that gives them with entry to U.S. fairness markets may go for the Vanguard S&P 500 ETF. Nevertheless, every investor should take into account the extent of danger they’re keen to take when investing—known as danger tolerance. Additionally, how lengthy the cash shall be invested out there is necessary to think about.

What Is the Vanguard S&P 500 ETF?

The Vanguard S&P 500 ETF (VOO) is a fund that invests within the shares of a few of the largest corporations in the US. It tracks and mirrors the efficiency of the S&P 500 index.

How Many Shares Are Current within the Vanguard S&P 500 Index ETF?

The Vanguard S&P 500 Index ETF had 503 shares in its portfolio as of Q2 2022.

Does the Vanguard S&P 500 Index Fund Pay Dividends?

Sure, the Vanguard S&P 500 pays quarterly dividends, and as of July 2022, yielded 1.62%.

Can I Purchase Fractional Shares of the Vanguard S&P 500 ETF?

Vanguard does provide the power to buy fractional shares for VOO on its platform. However you should purchase fractional shares of the ETF on different investing platforms, reminiscent of TD Ameritrade and Robinhood.

Will the Vanguard S&P 500 (VOO) ETF Break up?

The Vanguard S&P 500 (VOO) ETF has undergone a cut up simply as soon as in its lifetime. It occurred on Oct. 24, 2013, when its share worth was falling. The corporate performed a 1-for-2 reverse cut up, that means it mixed each two shares held by its buyers right into a single one. The reverse cut up diminished the variety of shares in circulation and doubled the ETF’s worth. It additionally diminished the unfold of the distinction between the shopping for and promoting worth of shares for buyers.

The Backside Line

Investing within the Vanguard S&P 500 ETF is a passive funding technique by which the fund tracks the efficiency of the S&P 500. In different phrases, the fund’s administration crew isn’t actively buying and selling by shopping for and promoting shares, which helps keep the decrease expense ratio.

Investing in Vanguard’s VOO is a low-stress manner for buyers to entry the U.S. fairness market. Nevertheless, there’s the danger of loss as with every funding, and buyers ought to seek the advice of a monetary skilled earlier than investing within the Vanguard S&P 500 ETF.

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