"VOO's mandate is simple: track the performance of the S&P 500, the benchmark index measuring the investment return of large-capitalization U.S. stocks. It owns all 500-plus companies in proportion to their market capitalization, meaning the bigger the company, the larger its slice of the fund."
"Over the past decade, the fund has returned 281%. The five-year return stands at 80%, and the one-year figure is 15%. The caveat is that much of the recent decade's performance has been driven by a narrow group of mega-cap technology companies."
"The cost structure is a genuine competitive advantage. VOO charges an expense ratio of 0.03%, meaning an investor with $100,000 in the fund pays $30 per year in fees. Portfolio turnover runs at just 2%, keeping tax drag minimal in taxable accounts."
Vanguard 500 Index Fund ETF Shares (VOO) aims to track the S&P 500 index, holding all companies in proportion to their market capitalization. With 32.2% of its assets in Information Technology, VOO's performance is significantly influenced by major tech companies. The fund has a low expense ratio of 0.03% and a minimal portfolio turnover of 2%, which helps reduce tax drag. Over the past decade, VOO has returned 281%, but its performance is closely tied to a few large-cap tech stocks, raising questions about its diversification.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]