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The Vanguard S&P 500 ETF (VOO) is an exchange-traded fund that seeks to track the performance of the S&P 500 Index, which is composed of the 500 largest publicly traded companies in the United States. The ETF is managed by Vanguard Group Inc. and trades under the ticker VOO on NYSE Arca.
Classified as an international equity ETF, VOO aims to reflect, before fees and expenses, the performance of the stocks that make up the S&P 500. To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the benchmark index.
The S&P 500 is weighted by float-adjusted market capitalization, which gives greater weight to larger companies and ensures broader representation of the U.S. economy.
Diversification and sector exposure
VOO provides broad exposure to U.S. large-cap stocks, companies known for high liquidity and extensive analyst coverage. Sector diversification includes areas such as:
Information technology.
Health care.
Consumer discretionary and consumer staples.
Financials.
Industrials.
Energy.
This composition reflects, in a balanced manner, the economic structure of the United States.
Structure and costs
Shares of VOO are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).
The fund features a low expense ratio, a common characteristic of Vanguard ETFs, and does not charge a performance fee. VOO has a single share class and trades exclusively under the ticker VOO.
History and evolution of the ETF
Since its inception, the fund has achieved strong liquidity and growth in assets under management, driven by the widespread acceptance of the S&P 500 as the primary benchmark for the U.S. stock market.
Throughout its history, VOO has maintained a consistent focus on replicating its benchmark index, without significant changes to its methodology or investment policy.
Between 2020 and 2024, VOO reflected the major movements of the U.S. equity market amid a backdrop of significant events such as the COVID-19 pandemic, shifts in monetary policy, and technological advances, while maintaining high liquidity and broad use by institutional and individual investors.
