VOO ETF: How Vanguard S&P 500 ETF Works

Overview

Vanguard S&P 500 ETF (VOO) is a US-listed fund offering Australian investors exposure to a broad portfolio of large US companies. Its 504 reported holdings span multiple industries, though the largest positions and the technology sector account for a substantial share of the portfolio. Investors should also account for its US-dollar denomination when considering how its value may translate into Australian dollars.

Category

VOO provides exposure to large US companies across sectors including technology, financial services, communication services, healthcare and consumer businesses. The portfolio combines many holdings with market-weighted positions, so the largest companies can have an outsized effect on its overall performance.

The supplied return figures show positive performance across the reported periods: 13.971% year to date, 16.218% over one year, 22.094% annualised over three years, 13.122% annualised over five years and 14.77% annualised over ten years. These figures describe past performance, which can vary across periods and does not guarantee future results. For Australian investors, returns in Australian dollars may also differ as the US dollar moves against the Australian dollar.

Key facts

Ticker

VOO

Exchange

US

ISIN

US9229083632

Category / focus

US Equity

Provider

Vanguard

Domicile

United States

Currency

USD

Inception date

2010-09-07

UCITS

No

Holdings count

502

Costs

TER

0.02%

Net expense ratio

0.02%

AUM

1.1T

The reported total expense ratio is 0.02%. This ongoing fund cost is separate from any brokerage, currency-conversion charges, tax or other costs an investor may incur.

Performance

YTD

12.1%

1 year

12.0%

3 years

21.4%

5 years

12.3%

10 years

16.0%

Dividend yield

1.02%

Top 10 concentration

39.0%

Holdings

1. NVIDIA Corporation8.35%

   Ticker

   NVDA

   Sector

   Technology

   Country

   United States

2. Apple Inc.7.67%

   Ticker

   AAPL

   Sector

   Technology

   Country

   United States

3. Microsoft Corporation5.89%

   Ticker

   MSFT

   Sector

   Technology

   Country

   United States

4. Amazon.com Inc3.59%

   Ticker

   AMZN

   Sector

   Consumer Cyclical

   Country

   United States

5. Alphabet Inc Class A2.97%

   Ticker

   GOOGL

   Sector

   Communication Services

   Country

   United States

6. Broadcom Inc2.47%

   Ticker

   AVGO

   Sector

   Technology

   Country

   United States

7. Alphabet Inc Class C2.43%

   Ticker

   GOOG

   Sector

   Communication Services

   Country

   United States

8. Meta Platforms Inc.2.40%

   Ticker

   META

   Sector

   Communication Services

   Country

   United States

9. Micron Technology Inc1.76%

   Ticker

   MU

   Sector

   Technology

   Country

   United States

10. Tesla Inc1.46%

    Ticker

    TSLA

    Sector

    Consumer Cyclical

    Country

    United States

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

The portfolio contains 504 holdings, but its largest positions have a meaningful influence: the ten largest account for 36.71% of assets. NVIDIA, Apple and Microsoft are the biggest reported holdings, with weights of 7.501%, 6.854% and 4.385%, respectively. Technology is the largest sector at 37.535%, giving the portfolio a notable tilt towards technology businesses despite its holdings across multiple sectors.

Regions

• North America95.7%

• Europe Developed0.3%

• Asia Emerging0.1%

• Latin America0.1%

• United Kingdom0.0%

• Japan0.0%

• Australasia0.0%

• Asia Developed0.0%

• Europe Emerging0.0%

• Africa/Middle East0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Asset allocation

• Stock US96.3%

• Stock non-US0.5%

• Other0.1%

• Cash0.0%

• Bond0.0%

• NotClassified0.0%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Sectors

• Technology42.0%

• Financial Services10.9%

• Communication Services9.9%

• Healthcare9.2%

• Consumer Cyclicals8.8%

• Industrials7.6%

• Consumer Defensive4.3%

• Energy3.5%

• Utilities1.9%

• Real Estate1.8%

Weights are percentages of the fund; bars use a 0–100% scale. Displayed entries may not cover the whole portfolio.

Related ETFs

VOO can be considered alongside other broad US-share ETFs when comparing portfolio composition, costs, structure and currency exposure. The supplied information does not establish a verified benchmark for this profile.

Risks

Who it may suit

VOO may be of interest to Australian investors researching broad exposure to large US companies through a US-listed, US-dollar-denominated ETF. Its portfolio is concentrated in larger holdings and US equities, so it may be less suited to someone seeking global diversification or a portfolio weighted towards income. This is general information, not a personal recommendation.

Key risks

VOO is exposed to movements in US share prices and has substantial exposure to a small group of large companies, including sizeable technology holdings. Its US-dollar denomination also creates currency risk for Australian investors: exchange-rate changes can increase or reduce returns measured in Australian dollars. Share values and distributions can fall as well as rise, and past returns do not predict future performance.

FAQ