Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Vanguard 500 Index Fund ETF Shares (VOO) is a passively managed exchange traded fund launched on September 9, 2010.
The fund is sponsored by Vanguard. It has amassed assets over $980.78 billion, making it the largest ETF attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.07%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector -- about 36.5% of the portfolio. Financials and Telecom round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 7.58% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 14.24% of total assets under management.
Performance and Risk
VOO seeks to match the performance of the S&P 500 Index before fees and expenses. The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market.
The ETF has added about 10.3% so far this year and was up about 20.29% in the last one year (as of 07/22/2026). In the past 52-week period, it has traded between $571.45 and $698.26.
The ETF has a beta of 1.00 and standard deviation of 14.65% for the trailing three-year period, making it a medium risk choice in the space. With about 507 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard 500 Index Fund ETF Shares 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 an excellent option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The State Street SPDR S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV) track the same index. While State Street SPDR S&P 500 ETF Trust has $790.05 billion in assets, iShares Core S&P 500 ETF has $886.59 billion. SPY has an expense ratio of 0.09% and IVV charges 0.03%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Vanguard 500 Index Fund ETF Shares (VOO): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).