Hedge Funds Increase Vanguard S&P 500 ETF Stakes by 322% and 4.7% While Another Sells 6.3%
Clune & Associates lifted its Vanguard S&P 500 ETF stake by 4.7% (808 shares) to 17,947 shares in Q3, valuing $10.99 million. Fire Capital Management upped its position by 322% with 4,333 shares ($3.48 million), while Founders Grove sold 1,025 shares (–6.3%), cutting its stake to 15,274 shares.
1. Vanguard S&P 500 ETF as a Decade-Long Core Holding
Financial advisors are urging investors to consider the Vanguard S&P 500 ETF (VOO) as a foundational, set-and-forget investment for the next 10 years. The fund provides exposure to approximately 500 large-cap U.S. companies—ranging from technology giants like Apple and industrial stalwarts like Home Depot to consumer names such as Coca-Cola—while maintaining an ultra-low expense ratio of just 0.03%. With an annual dividend yield near 1% and automatic, passive rebalancing, VOO simplifies broad-market coverage without the stock-picking burden or significant fees that can erode long-term returns.
2. Robust 2025 Performance Underscores Long-Term Potential
VOO has demonstrated its resilience once again in 2025, recording a year-to-date gain of approximately 17% as of December 26, despite a brief April drawdown. This marks the third consecutive year of double-digit advances for the S&P 500 index and its ETF proxy. Historical data show that prolonged hold periods—10 years or more—tend to smooth out short-term volatility and capture the index’s upward drift, bolstered by earnings growth from constituents such as Exxon Mobil, Bank of America and Walmart.
3. High Liquidity and Industry-Leading Cost Structure
VOO stands out for its combination of heavy trading volume and rock-bottom operating costs. Daily share turnover regularly reaches into the millions, resulting in narrow bid-ask spreads that reduce transaction costs for both retail and institutional investors. Meanwhile, the 0.03% expense ratio equates to just $0.03 in annual fees per $100 invested—significantly lower than the 0.25% to 1% charges typical of many actively managed and specialty ETFs. This cost advantage compounds substantially over a decade-long horizon.
4. Recent Institutional Position Changes Highlight Continued Confidence
In Q3, Clune & Associates LTD. increased its VOO stake by 4.7%, adding 808 shares to reach 17,947 shares valued at $10.991 million, making it their eighth largest position. Fire Capital Management LLC boosted its holding by 322.2%, acquiring 4,333 additional shares for a total of 5,678 shares worth $3.477 million. Conversely, Founders Grove Wealth Partners LLC trimmed its allocation by 6.3%, selling 1,025 shares to end the quarter with 15,274 shares valued at $9.354 million. These movements underscore steady institutional demand and ongoing portfolio rebalancing around VOO.