Vanguard S&P 500 ETF (VOO): Complete Beginner's Guide
Vanguard S&P 500 ETF (VOO) is a u.s. large-cap blend ETF from Vanguard with an expense ratio of 0.03% and $560.0B in assets under management. Our Beginner Suitability Score: 9.5/10 (Great for Beginners). 5-year annualized return: 15.80%.
Last updated: April 2026
Vanguard • U.S. Large-Cap Blend
Expense Ratio
0.03%
AUM
$560.0B
Dividend Yield
1.30%
Inception
2010
Beginner Score
9.5/10
What is Vanguard S&P 500 ETF?
VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.
VOO is managed by Vanguard and has been available since 2010. With $560.0B in assets under management, it's one of the largest and most liquid ETFs available. The fund charges an expense ratio of 0.03%, which means for every $10,000 you invest, you pay approximately $3 per year in management fees.
VOO at a Glance — Key Metrics
| Expense Ratio | 0.03% |
| Total Holdings | 503 |
| P/E Ratio | 25.8 |
| Beta | 1.00 |
| Dividend Yield | 1.30% |
| AUM | $560.0B |
| Inception Year | 2010 |
| Issuer | Vanguard |
Top 10 Holdings in VOO
VOO holds 503 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 7.20% |
| 2 | Microsoft Corp. | MSFT | 6.50% |
| 3 | NVIDIA Corp. | NVDA | 6.20% |
| 4 | Amazon.com Inc. | AMZN | 3.80% |
| 5 | Meta Platforms Inc. | META | 2.70% |
| 6 | Alphabet Inc. Class A | GOOGL | 2.30% |
| 7 | Berkshire Hathaway Inc. | BRK.B | 1.90% |
| 8 | Alphabet Inc. Class C | GOOG | 1.90% |
| 9 | Broadcom Inc. | AVGO | 1.80% |
| 10 | Tesla Inc. | TSLA | 1.70% |
VOO's top holding is Apple Inc. (AAPL) at 7.20%, followed by Microsoft Corp. (MSFT) at 6.50% and NVIDIA Corp. (NVDA) at 6.20%. The top 10 holdings account for 36.00% of the fund's 503 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 7.20% |
| 2 | Microsoft Corp. | MSFT | 6.50% |
| 3 | NVIDIA Corp. | NVDA | 6.20% |
| 4 | Amazon.com Inc. | AMZN | 3.80% |
| 5 | Meta Platforms Inc. | META | 2.70% |
| 6 | Alphabet Inc. Class A | GOOGL | 2.30% |
| 7 | Berkshire Hathaway Inc. | BRK.B | 1.90% |
| 8 | Alphabet Inc. Class C | GOOG | 1.90% |
| 9 | Broadcom Inc. | AVGO | 1.80% |
| 10 | Tesla Inc. | TSLA | 1.70% |
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VOO Performance History
Here's how VOO has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
3.20%
1 Year
26.70%
3 Year
11.20%
5 Year
15.80%
10 Year
13.30%
VOO has returned 15.80% annualized over 5 years and 13.30% over 10 years. YTD return is 3.20%.
View data table
| Period | Return |
|---|---|
| YTD | 3.20% |
| 1 Year | 26.70% |
| 3 Year | 11.20% |
| 5 Year | 15.80% |
| 10 Year | 13.30% |
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
VOO scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 503 holdings, and has been available since 2010, giving it a proven track record.
How to Buy VOO — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "VOO" — Use the search bar in your brokerage platform to find Vanguard S&P 500 ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
VOO Sector Allocation
Here's how VOO distributes its investments across different sectors of the economy:
VOO's largest sector allocation is Information Technology at 31.8%, followed by Financials at 13.3% and Health Care at 11.7%.
View data table
| Sector | Weight |
|---|---|
| Information Technology | 31.8% |
| Financials | 13.3% |
| Health Care | 11.7% |
| Consumer Discretionary | 10.4% |
| Communication Services | 8.9% |
| Industrials | 8.3% |
| Consumer Staples | 5.7% |
| Energy | 3.5% |
| Utilities | 2.5% |
| Real Estate | 2.2% |
| Materials | 2.1% |
Dollar Cost Averaging Into VOO
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With VOO's expense ratio of 0.03%, a $10,000 investment would lose approximately $258 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
VOO's expense ratio of 0.03% costs $259 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,351.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,673 | $20 |
| 10 | $21,589 | $21,529 | $60 |
| 15 | $31,722 | $31,590 | $132 |
| 20 | $46,610 | $46,351 | $259 |
Pros and Cons of VOO
Pros
- ✓Ultra-low expense ratio of just 0.03%, among the cheapest ETFs available
- ✓Tracks the S&P 500, the most widely followed benchmark of the U.S. stock market
- ✓Massive assets under management ensure excellent liquidity and tight bid-ask spreads
- ✓Strong historical long-term returns averaging over 10% annually
Cons
- ✗Heavily concentrated in mega-cap tech stocks, with the top 10 holdings making up over 35% of the fund
- ✗No exposure to small-cap or mid-cap stocks, which may outperform in certain market environments
- ✗Relatively low dividend yield compared to dividend-focused ETFs
VOO vs Similar ETFs
See how VOO stacks up against similar funds:
Frequently Asked Questions
Is VOO a good ETF for beginners?▾
VOO has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of VOO?▾
VOO has an expense ratio of 0.03%. This means for every $10,000 you invest, you pay approximately $3 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in VOO?▾
You can invest in VOO with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does VOO pay dividends?▾
Yes, VOO pays dividends with a current yield of approximately 1.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in VOO?▾
The top holdings in VOO include Apple Inc. (7.20%), Microsoft Corp. (6.50%), NVIDIA Corp. (6.20%), and more. The fund holds 503 total positions, providing broad diversification across many companies.
What sectors does VOO invest in?▾
VOO's largest sector allocations are Information Technology (31.80%), Financials (13.30%), Health Care (11.70%). This sector distribution shows a focus on information technology stocks.
How much do VOO's fees cost over time?▾
With an expense ratio of 0.03%, a $10,000 investment in VOO would lose approximately $258 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.