1 Reason Why Now Is the Time to Buy the Vanguard S&P 500 ETF (VOO)
Yahoo Finance·2025-10-07 09:57

Core Viewpoint - The Vanguard S&P 500 ETF (NYSEMKT: VOO) is presented as a compelling investment opportunity, effectively representing a significant portion of the U.S. economy and offering exposure to various sectors such as technology and healthcare [1]. Summary by Sections ETF Overview - The Vanguard S&P 500 ETF is an index fund that tracks the S&P 500 index, which includes 500 of America's largest companies. It features an ultra-low expense ratio of 0.03%, translating to an annual fee of $3 for every $10,000 invested [2]. Performance Metrics - The ETF has historically matched the S&P 500's returns, which have averaged close to 10% over several decades. Recent performance shows: - Past 5 years: 16.62% - Past 10 years: 15.12% - Past 15 years: 14.60% [3]. Composition and Market Coverage - The ETF encompasses approximately 80% of the total U.S. stock market's value, making it a significant vehicle for participating in the growth of the U.S. economy. The top 10 components by weight include: - Nvidia: 7.75% - Microsoft: 6.87% - Apple: 6.32% - Amazon.com: 3.95% - Meta Platforms: 2.93% - Broadcom: 2.55% - Alphabet Class A: 2.26% - Alphabet Class C: 1.83% - Tesla: 1.71% - Berkshire Hathaway Class B: 1.68% [3][5]. Investment Recommendation - The ETF is recommended for long-term investment, with the added benefit of dividend payments. Notably, Warren Buffett has endorsed low-fee S&P 500 index funds, emphasizing the historical success of investing in America [6].