The Vanguard S&P 500 ETF (VOO) is a passively managed fund designed to track the performance of the S&P 500 Index by holding approximately 500 of the largest U.S. companies. Launched in September 2010, VOO has amassed over $900 billion in assets under management and carries a rock-bottom expense ratio of just 0.03%. It distributes dividends quarterly, providing investors with a current yield of 1.10%.

VOO is a technology-heavy fund, allocating 34% of its portfolio to that sector, followed by financials at 13% and communication services at 11%. Its single-largest position is Nvidia and Apple Inc., which together represent 14% of the fund’s total weight. Other top ten holdings include Alphabet, Broadcom, Microsoft, Amazon, Meta Platforms, Tesla and Berkshire Hathaway, giving investors exposure to the companies driving U.S. market leadership.

Over the past three years, VOO has delivered a cumulative return of 85.94%, and over five years, 95.80%. Since inception, it has achieved a compound annual growth rate of 17%. In 2025, the ETF recorded an all-time annual inflow high of $143 billion, underscoring robust investor demand for low-cost, large-cap U.S. equity exposure.

VOO rebalances quarterly to ensure its holdings accurately reflect the S&P 500 Index’s market-cap weights and to remove underperformers. With a one-year gain of 19.5% and consistent outperformance relative to the index benchmark, the ETF offers both broad diversification and targeted exposure to leading sectors. Investors seeking steady growth, minimal tracking error and low fees continue to view VOO as a core equity holding for long-term portfolios.