VOO Has Made Millionaires, But Its 1.1% Yield Worries Retirees

"Vanguard S&P 500 ETF (NYSEARCA:VOO) has become the default answer to almost any investing question, from a 25-year-old wondering what to do with a windfall to someone debating whether to pay off their mortgage. The sentiment score on Reddit has held steady at roughly 59 to 60 across the past week, month, and quarter, which tells its own story: nobody is panicking, and nobody is euphoric."

"The fund currently trades at $636, up 15% over the past year and 76% over five years, which is pretty incredible for a fund with $1.5 trillion in net assets and an expense ratio of just 0.03%, it is one of the most cost-efficient ways to own a broad slice of the U.S. economy."

"The most engaging VOO thread of the past month asked a simple question: 'Is it true once you hit 100k in investing, it really just takes off from there?' The discussion reflects how Reddit investors actually think about VOO: not as an income vehicle, but as the engine of long-term wealth accumulation."

VOO has become the standard recommendation across personal finance communities for investors of all experience levels. Trading at $636, it has delivered 15% returns over one year and 76% over five years while maintaining a remarkably low expense ratio of 0.03%. With $1.5 trillion in net assets, VOO provides cost-efficient exposure to the broad U.S. economy. Reddit sentiment remains stable at 59-60, reflecting neither panic nor euphoria. The $100K investment milestone generates significant discussion, with investors recognizing VOO as the engine driving long-term wealth compounding. Its 1.1% dividend yield, while modest compared to Treasury yields, functions as a feature rather than a limitation for long-term wealth building.

Read at 24/7 Wall St.