VOO is appealing for many investors because it's well diversified and comprises equities of large corporations—called large-cap stocks. Large-cap stocks tend to be more stable with a solid track record of profitability as opposed to smaller companies.
There are two major takeaways here. First, if you start saving before your 30th birthday, you only need to invest about $400 monthly in VOO or a similar fund -- or less if you get employer matching contributions -- to reach your target balance.
The Vanguard S&P 500 (VOO) ETF granted a 1.59% dividend yield in 2021.
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
They consistently put money in diversified, historically sound investments over the course of several decades. This disciplined approach can make you into a millionaire, even if you earn an average salary. ... If you want to retire a millionaire, the Vanguard S&P 500 ETF (NYSEMKT: VOO) could be the perfect choice for you.
Comparison to S&P 500 Index
To help put this inflation into perspective, if we had invested $8,000 in the S&P 500 index in 1980, our investment would be nominally worth approximately $1,003,549.12 in 2022.
VOO is appealing for many investors because it's well diversified and comprises equities of large corporations—called large-cap stocks. ... 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.
Even with these risks, however, investors have long done well by investing in the index – and at 0.03% in annual expenses, there's no cheaper way to go about it. That's why VOO belongs among our 22 best ETFs to buy for 2022.
VOO Dividend Yield: 1.31% for Feb. 8, 2022.
Vanguard S&P 500 ETF (NYSEARCA:VOO) pays Quarterly dividends to shareholders.
Dividend Summary
There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.0.
The largest Vanguard ETF is the Vanguard Total Stock Market ETF VTI with $282.40B in assets. In the last trailing year, the best-performing Vanguard ETF was VDE at 68.92%. The most recent ETF launched in the Vanguard space was the Vanguard Ultra-Short Bond ETF VUSB on 04/05/21.
Vanguard S&P 500 ETF is an exchange-traded share class of Vanguard 500 Index Fund, which employs a “passive management”—or indexing—investment approach designed to track the performance of the S&P 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. ...
The first difference you will notice is that VOO is an ETF, while VFIAX and VFINX are both index mutual funds. ETFs (short for exchange traded funds) and mutual funds differ in how they are traded and evaluated. ... Mutual fund share prices are determined by the net asset value (NAV) of all of the holdings.
VOO allows investors to put up “good-until-canceled” stop-loss and stop-limit orders. While for the buy-and-hold investor with little or no experience trading equities, these might be problematic. FXAIX provides a strong long-term return, is well-diversified, and is a low-risk option to invest in companies.
As you can see in the chart below, over a 5-year period, VOO outperformed VFIAX by a total of . 30%. That works out to $30 per $10,000 invested, or roughly $6 a year.
The investor who for some reason is only seeking lower volatility large-cap stocks will want to go with VOO, tracking the S&P 500 Index. Those desiring greater diversification and greater expected returns, at the cost of slightly greater volatility, will want to go with VTI to capture the entire U.S. stock market.
Which is Better VOO or SPY? SPY and VOO are very similar investments because they track the same index. However, VOO is better because it has a lower expense ratio of only 0.03%. VOO can also be purchased commission-free through Vanguard, which is the brokerage I prefer to use.
The Vanguard 500 ETF index holds a buy signal from the short-term moving average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the index giving a more negative forecast for the stock.
Stock market returns since 1965
If you invested $100 in the S&P 500 at the beginning of 1965, you would have about $28,159.36 at the beginning of 2022, assuming you reinvested all dividends. This is a return on investment of 28,059.36%, or 10.40% per year.
After looking at the data from different angles, there is very little difference between SPY and VOO in the short term. Day-to-day changes between the stocks are nearly identical. However, extending an investing period to 1 year and even 5 years amplify minor differences into more substantial ones.
Exchange traded funds (ETFs) are ideal for beginner investors due to their many benefits such as low expense ratios, abundant liquidity, range of investment choices, diversification, low investment threshold, and so on.