S&P Vanguard 500 Index Fund Overview

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The S&P Vanguard 500 Index Fund is a great option for investors looking to gain exposure to the US stock market.

It tracks the S&P 500 Index, which consists of 500 of the largest and most liquid stocks in the US.

The fund is managed by Vanguard, a well-respected and low-cost investment manager.

With over $1 trillion in assets under management, the S&P Vanguard 500 Index Fund is one of the largest index funds in the world.

It has a very low expense ratio of 0.04%, making it an attractive option for cost-conscious investors.

Fundamentals

The market capitalization of the S&P Vanguard 500 is a staggering $536,240.802 million.

The fund's shares outstanding total 985.01 million.

The price-to-earnings (PE) ratio of the S&P Vanguard 500 is 22.75, which is within the 10-year range of 17.2 to 28.9.

The 10-year median PE ratio is 20.1, giving us a benchmark to compare the current ratio.

The price-to-book (PB) ratio is 4.05, which is within the 10-year range of 2.52 to 4.6.

The 10-year median PB ratio is 3.19, providing a useful reference point.

Here's a summary of the key fundamentals in a table:

Investors and Holdings

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The Vanguard 500 Index Fund is a popular investment option that tracks the S&P 500 index. The fund is held by various investors, including institutional investors and individual investors.

Some of the top holdings in the Vanguard 500 Index Fund include Apple Inc, Microsoft Corp, and NVIDIA Corp. These companies make up a significant portion of the fund's assets, with Apple Inc holding a 7.07% stake in the fund. NVIDIA Corp holds a 6.66% stake, and Microsoft Corp holds a 6.17% stake.

Here are the top 10 holdings in the Vanguard 500 Index Fund, ranked by their percentage of assets:

Arca:Voo Investors

Apple Inc holds the largest number of shares in ARCA:VOO, with 398,082,327 shares.

Investors like Apple Inc have a significant impact on the market, and their holdings can influence the overall performance of ARCA:VOO.

Microsoft Corp is another major investor, holding 194,672,565 shares, which is a substantial portion of the total shares outstanding.

The largest investors in ARCA:VOO are:

The largest investors in ARCA:VOO also hold a significant portion of the total market value of the fund, with Apple Inc holding 92,753,182.2 thousand dollars worth of shares.

Holdings

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Investors hold a significant amount of shares in various companies, and it's essential to understand who these investors are and what they own.

The Vanguard 500 Index Fund's top holdings are dominated by tech giants, with Apple Inc holding 7.07% of the fund's assets.

Here are the top 10 holdings of the Vanguard 500 Index Fund as of November 30, 2024:

In the ARCA:VOO, Apple Inc holds 398,082,327 shares, followed closely by Microsoft Corp with 194,672,565 shares.

Investment Details

The Vanguard S&P 500 ETF is designed to track the performance of the S&P 500 index, a widely recognized benchmark of U.S. stock market performance. This index is comprised of the stocks of large U.S. companies.

The fund employs a "passive management" approach, also known as indexing, to track the performance of the S&P 500. This means it invests in the stocks that make up the index in the same proportions as their weighting in the index.

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The Vanguard S&P 500 ETF has delivered on its objective over the years, with returns that have roughly matched those of the S&P 500 index. Its expense ratio is modest, resulting in a slight underperformance compared to the index.

Here's a comparison of the fund's returns to the S&P 500 index over various time periods:

Index Fund Historical Holdings Breakdown

Historical holdings breakdowns can provide valuable insights into the investment decisions made by a fund manager over time. The Vanguard 500 Index Fund's holdings have changed significantly since 2023.

Apple Inc has been a consistent holding in the fund, with the number of shares increasing by 28 million in 2024. The fund's holding of Microsoft Corp has also seen significant growth, with the number of shares increasing by 5.7 million in 2024.

Some notable additions to the fund's holdings include NVIDIA Corp, which was added in 2024, and Airbnb Inc, which was added in 2023. On the other hand, Activision Blizzard Inc was sold out of the fund in 2023.

Check this out: Bcbs Network S

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Here are the top 10 holdings of the fund as of November 30, 2024:

These holdings make up a significant portion of the fund's assets, and provide a snapshot of the investment strategy employed by the fund manager.

Do Pay Dividends?

Many dividend-paying ETFs offer a relatively stable source of income for investors.

The Vanguard S&P 500 ETF paid a dividend of roughly 1.3% in mid-2024, approximating the S&P 500's dividend yield.

Dividend payments from this fund are made quarterly, although they will fluctuate from quarter to quarter based on the dividends received.

Payments have steadily risen over the years, making it a reliable choice for those seeking a steadily rising dividend payment.

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Expense Ratio

The expense ratio is a crucial factor to consider when investing in the Vanguard S&P 500 ETF. A low expense ratio means you get to keep more of your returns.

A hallmark of Vanguard-managed funds is their ability to pass on economies of scale and lower investment costs to investors through a lower expense ratio. This enables fund investors to keep more of their returns.

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The Vanguard S&P 500 ETF has an ultra-low expense ratio of 0.03%, significantly below the average 0.79% expense ratio of similar funds. This low expense ratio is a major advantage for investors.

Here's a comparison of the management fees charged by Vanguard on a $10,000 investment in the Vanguard S&P 500 ETF: only $3 per year. For comparison, a similar $10,000 investment in a fund charging 0.79% would cost $79 per year.

This lower cost adds up over the years, eating into an investor's returns. By choosing the Vanguard S&P 500 ETF, you can keep more of your returns and achieve your long-term investment goals.

Here's an interesting read: Vanguard Personal Advisor Services 500 000

Open an Account

Opening an account to buy shares of the Vanguard S&P 500 ETF is a straightforward process that can be completed in five to 10 minutes on Vanguard's website.

You'll need to open either a regular brokerage account or a Vanguard account to get started.

It's easy to open an account with Vanguard, and you can choose any of their investment products, including the Vanguard S&P 500 ETF, once you've opened an account.

If you'd prefer to open a brokerage account instead, there are several well-rated brokers and trading platforms to consider.

Related reading: Vanguard Able Account

Should I Invest in?

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If you're considering investing in the S&P Vanguard 500, here are some things to keep in mind. The Vanguard S&P 500 ETF tracks the performance of the S&P 500 index, a widely recognized benchmark of U.S. stock market performance.

The S&P 500 index is comprised of the stocks of large U.S. companies, and the Vanguard S&P 500 ETF attempts to replicate this index by investing in the same stocks. The fund employs a "passive management" approach, designed to track the performance of the index.

You might want to invest in the Vanguard S&P 500 ETF if you're seeking an investment that can deliver returns that roughly match those of the S&P 500 index. This could be a good option if you're looking for a low-cost passive investment.

On the other hand, the Vanguard S&P 500 ETF might not be right for you if you're seeking investments that can deliver higher returns than the S&P 500. This fund also has market risk with volatility that will match the S&P 500.

For more insights, see: Investing in S&p 500 Index

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Here are some specific reasons to consider or avoid the Vanguard S&P 500 ETF:

  • You're seeking an investment that can deliver returns that roughly match those of the S&P 500 index.
  • You want a low-cost passive investment.
  • You understand that while the Vanguard S&P 500 ETF provides market returns, it also has market risk with volatility that will match the S&P 500.
  • You're seeking a diversified investment that provides broad exposure to the U.S. stock market.
  • You're seeking investments that can deliver higher returns than the S&P 500.
  • You're a more risk-averse person and want an investment with lower volatility than the S&P 500.
  • You're at or nearing retirement and need more income than the Vanguard S&P 500 ETF can produce.
  • You're seeking an investment with less concentration among its top holdings.

Historical Performance of

The Vanguard S&P 500 ETF has been delivering market-matching returns for years, with its performance closely tracking the S&P 500 index.

One notable aspect of the fund's historical performance is its ability to match the returns of the S&P 500 over various time periods, including 1-year, 3-year, 5-year, and 10-year periods.

The fund's 1-year return of 22.41% is roughly on par with the S&P 500's 1-year return of 22.46%, as shown in the table below.

This level of performance is impressive, especially considering the fund's ultra-low expense ratio, which helps minimize costs and maximize returns.

The fund's 3-year return of 7.99% and 5-year return of 13.14% are also notable, reflecting its ability to deliver consistent returns over the long-term.

Overall, the Vanguard S&P 500 ETF has established itself as a reliable choice for investors seeking a low-cost way to earn market-matching returns.

If this caught your attention, see: Vanguard Index Funds S

VOO Overview

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The Vanguard S&P 500 ETF (VOO) is an exchange-traded fund (ETF) that tracks the S&P 500 index.

VOO provides a great deal of investment diversification within a single fund.

This ETF is the largest S&P 500 ETF in terms of assets, with more than $1 trillion under management.

VOO tracks the S&P 500 index, which contains about 500 of the largest publicly traded companies in the U.S.

Investors find VOO appealing due to its ability to provide diversification within a single fund.

Frequently Asked Questions

Is Vanguard S&P 500 Index fund a good investment?

The Vanguard S&P 500 Index fund is a popular and widely held investment option, offering broad exposure to the U.S. stock market. If you're looking for a low-cost, diversified investment, it's worth considering.

What is the difference between VOO and VGT?

VOO and VGT are two popular ETFs that track different segments of the US stock market, with VGT focusing on technology and growth stocks, while VOO tracks the overall S&P 500 index. Understanding the key differences between these two ETFs is crucial for making informed investment decisions.

Does the Vanguard S&P 500 ETF pay dividends?

Yes, the Vanguard S&P 500 ETF (VOO) pays a dividend, but its yield may not be the highest among income-focused funds.

What is the symbol for Vanguard S&P 500?

The symbol for the Vanguard S&P 500 ETF is VOO. This popular ETF tracks the performance of the S&P 500 Index, providing broad exposure to the US stock market.

Timothy Gutkowski-Stoltenberg

Senior Writer

Timothy Gutkowski-Stoltenberg is a seasoned writer with a passion for crafting engaging content. With a keen eye for detail and a knack for storytelling, he has established himself as a versatile and reliable voice in the industry. His writing portfolio showcases a breadth of expertise, with a particular focus on the freight market trends.

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