Is it wise to invest in VOO?
The Vanguard S&P 500 ETF (VOO 1.26%) is a top choice for most index fund investors. Even Warren Buffett recommends it above any other investment. There's a good reason for that. Its low expense ratio and tight index tracking make it a top choice for anyone looking to match the returns of the S&P 500.
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
The S&P 500 simply reflects the market composition. In the long run, the funds' broad diversification, low turnover, and low fees outweigh these risks.” While the two ETFs follow the same strategy, they earn different ratings. VOO earns a top rating of Gold, while SPY earns the next best rating of Silver.
VOO Signals & Forecast
The VOO ETF holds a buy signal from the short-term Moving Average; at the same time, however, the long-term average holds a general sell signal.
VOO 12 Months Forecast
Based on 505 Wall Street analysts offering 12 month price targets to VOO holdings in the last 3 months. The average price target is $528.13 with a high forecast of $621.19 and a low forecast of $431.30.
Vanguard S&P 500 ETF (VOO)
For example, a young investor looking for long-term growth may pick a low-cost U.S. equity ETF like VOO, which tracks the S&P 500 index. Historically, this index has delivered excellent performance, but has also been quite volatile, so a high risk tolerance is essential.
Moreover, the Nasdaq 100 index has generated faster 10-year growth than major industry benchmarks, including the S&P 500. For conservative-minded investors, VOO's lower expense ratio and higher dividend yield is more appealing but risk-seeking investors may prefer QQQ in spite of its higher volatility.
Berkshire Hathaway CEO Warren Buffett has regularly recommended an S&P 500 index fund.
- Nippon India ETF Nifty 50 BeES. ₹ 241.63.
- Nippon India ETF PSU Bank BeES. ₹ 76.03.
- BHARAT 22 ETF. ₹ 96.10.
- Mirae Asset NYSE FANG+ ETF. ₹ 84.5.
- UTI S&P BSE Sensex ETF. ₹ 781.
- Nippon India ETF Gold BeES. ₹ 55.5.
- Nippon India Etf Nifty Bank Bees. ₹ 471.9.
- HDFC Nifty50 Value 20 ETF. ₹ 123.2.
| Fund (ticker) | 5-year annual returns | Expense ratio |
|---|---|---|
| Fidelity ZERO Large Cap Index (FNILX) | 14.6% | 0% |
| Vanguard S&P 500 ETF (VOO) | 14.5% | 0.03% |
| SPDR S&P 500 ETF Trust (SPY) | 14.5% | 0.095% |
| iShares Core S&P 500 ETF (IVV) | 14.5% | 0.03% |
Is VOO a good long-term investment?
Investing in the S&P 500 index fund, such as VOO, is a winning long-term strategy. Historical data shows that the market has consistently gone higher despite obstacles and downturns.
VOO has a dividend yield of 1.38% and paid $6.41 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.
Vanguard S&P 500 ETF Stock ( VOO) is expected to reach an average price of $ 677.28 in 2030, with a high forecast of $ 725.36 and a low forecast of $ 629.20.
VOO Total Return Price: 456.44 for April 22, 2024.
In the past year, VOO returned a total of 24.48%, which is slightly higher than VTI's 24.08% return. Over the past 10 years, VOO has had annualized average returns of 12.50% , compared to 11.87% for VTI. These numbers are adjusted for stock splits and include dividends.
In the last five years, it has outperformed 93% of them. It has also outpaced 90% of its competitors on a three year basis and 89% of them over the last year for the period ending 2/29/2024. On a year to date basis, VOO has returned 7.93%.
VTI is a total U.S. market fund and holds more than 3,500 stocks. VTI is better diversified and benefits from small and mid-cap stocks that grow into large caps. VOO is less diversified, tracking the performance of the S&P 500 Index. VOO excludes small and mid-cap stocks.
If you want broader exposure and more diversification, choose VTI. Or, you could also invest in both, for example, by putting half in VOO and half in VTI. Here's a summary of which one to choose: If you want to own only the biggest and safest stocks, choose VOO.
Offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds. More appropriate for long-term goals where your money's growth is essential.
When is VOO dividend payment date? VOO's next quarterly payment date is on Mar 27, 2024, when VOO shareholders who owned VOO shares before Mar 22, 2024 received a dividend payment of $1.54 per share. Add VOO to your watchlist to be reminded of VOO's next dividend payment.
Should I invest in S&P or Nasdaq ETF?
So, if you are looking to own a more diversified basket of stocks, the S&P 500 will be the right fit for you. However, those who are comfortable with the slightly higher risk for the extra returns that investing in Nasdaq 100 based fund might generate will be better off with Nasdaq 100.
Should you invest in ETFs? Since ETFs offer built-in diversification and don't require large amounts of capital in order to invest in a range of stocks, they are a good way to get started. You can trade them like stocks while also enjoying a diversified portfolio.
Warren Buffett made his fortune by investing in individual companies with great long-term advantages. But his top recommendation for anyone is to buy a simple index fund. Buffett's recommendation underscores the importance of diversification.
Meanwhile, if you only invest in S&P 500 ETFs, you won't beat the broad market. Rather, you can expect your portfolio's performance to be in line with that of the broad market. But that's not necessarily a bad thing. See, over the past 50 years, the S&P 500 has delivered an average annual 10% return.
Investing in an S&P 500 fund can instantly diversify your portfolio and is generally considered less risky. S&P 500 index funds or ETFs will track the performance of the S&P 500, which means when the S&P 500 does well, your investment will, too. (The opposite is also true, of course.)
