If you buy and hold, VOO has a lower expense ratio. If you want to write covered calls, SPY has a better option chain. For most people, VOO will be slightly better.
Warren Buffett believes an S&P 500 index fund is the best way for most people to get stock market exposure. That's because buying individual stocks requires a level of commitment that exceeds what most investors are willing to undertake.
Diversification: VTI offers broader diversification by including companies of all sizes, while VOO's focus on large-cap companies may provide a slightly less diversified exposure.
Warren Buffett's Berkshire Owns 2 ETFs: SPY and VOO
SPDR S&P 500 ETF Trust SPY. Vanguard S&P 500 ETF VOO.
VOO has a consensus rating of Moderate Buy which is based on 400 buy ratings, 99 hold ratings and 5 sell ratings. What is VOO's price target? The average price target for VOO is $621.22. This is based on 504 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
The SPY ETF can be a convenient way to gain low-cost exposure to the S&P 500 index, a diversified basket of large cap U.S. stocks. While SPY has multiple advantages, investors should remain aware of certain risks, such as lack of exposure to other areas of the market, before buying shares.
Invesco S&P 500 Momentum ETF and American Century Focused Dynamic Growth ETF were among the best-performing ETFs in 2024. Stock exchange-traded funds, or equity ETFs, are often low-cost, tax-efficient instruments for investors to track popular indexes or leverage experienced manager choices to beat the market.
Average Return
In the past year, QQQ returned a total of 25.74%, which is slightly higher than VOO's 24.33% return. Over the past 10 years, QQQ has had annualized average returns of 18.26% , compared to 13.04% for VOO. These numbers are adjusted for stock splits and include dividends.
It does pay a dividend, because it contains blue-chip stocks that are often reliable dividend stocks. All of the Dividend Aristocrats, a set of companies that have raised their dividends at least once a year for at least 25 years, are S&P 500 members, and thus VOO has exposure to all of them.
SPY is managed by State Street (SPDR), while VOO is managed by Vanguard. Both SPY and VOO are considered high-volume assets. They're less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets. SPY has more assets under management than VOO by $74,689,414,027.
SPY, the world's most liquid ETF, trades $34 billion a day, on average. This gives investors the ability to tap into SPY's unmatched liquidity, which can help investors get in and out of markets fast, easily, and at a relatively attractive cost.
SPY has an expense ratio of 0.09%, which, while low, is still higher than that of VOO,'s 0.03%, one of the lowest expense ratios for S&P 500 ETFs. This makes VOO more cost-effective for long-term investors, as expense ratio differences compound over time and impact returns.
S&P 500 Investment Time Machine
Imagine you put $1,000 into either fund 10 years ago. You'd be up to roughly 126.4% — or $3,282 — from VOO and 126.9% — or $3,302 — from SPY. That's not exactly wealthy, but it shows how you can more than triple your money by holding an asset with relatively low long-term risk.
Berkshire Hathaway owns two exchange-traded funds (ETF), The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO). Both of these ETFs track the S&P 500.
VOO appeals to investors because of its diversification and focus on large-cap equities, which tend to be more stable and have a strong history of profitability compared with smaller, riskier companies. Large-cap stocks dominate the fund, providing exposure to stocks with a blend of stability and growth potential.
Should I buy or sell VOO ETF? The VOO ETF holds several negative signals and despite the positive trend, we believe VOO will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this ETF.
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