If You’re Not Investing in This Winning ETF, You Need to Ask Yourself Why

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

As 1 of Vanguard’s flagship scale funds, the Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the show of the S&P 500 (SNPINDEX: ^GSPC), representing astir 500 of the largest publically traded companies successful the U.S. These companies are the large hitters, making up astir 80% of the full U.S. banal market’s value.

Even better, VOO holds companies crossed each large sectors, including:

• Communication

• Consumer discretionary

• Energy

• Financials

• Healthcare

• Industrials

• Technology

• Market-cap-weighted

A market-cap-weighted scale assigns a larger value to companies with higher marketplace capitalization. In a nutshell, the larger the company, the much power it has connected however good the scale money performs.

Because the S&P 500 is marketplace cap-weighted and VOO tracks it, its holdings are besides market-cap-weighted. This means that the largest U.S. companies routinely predominate the apical of the list. Here’s a illustration of VOO’s apical holdings arsenic of Jan. 31, 2026:

This Vanguard ETF has immoderate peculiarly charismatic features.

• Low disbursal ratio: VOO has an highly debased disbursal ratio of 0.03%. The little your expenses, the much wealth you person to invest. Whether you're a seasoned capitalist oregon conscionable starting out, the cardinal is to debar wasting wealth connected fees.

• Automatic resets: Unless you person clip to regularly cheque marketplace performance, you tin beryllium unafraid successful the cognition that VOO automatically updates the show of its holdings. A azygous sojourn to the Vanguard S&P 500 tract tin archer you everything you request to cognize astir however your holdings are doing.

• Mirrors the S&P 500: It’s nary coincidence that VOO opted to travel the S&P 500. The S&P 500 has a agelong past of coagulated performance. The S&P 500’s holdings person experienced acold much bully years than bad. And since VOO mirrors the S&P 500, the aforesaid is existent of VOO.