The S&P 500 Index and its ETFs, like the SPY and VOO, will have a highly volatile week as investors react to several potential catalysts, including macro data, geopolitical events, and earnings. The index, which tracks the biggest companies in the United States, was trading at a record high of $6,965.
I maintain that long-term investors should hold some S&P 500 as a forward-compatible position amid rapid AI advancements and the difficulty of identifying winners and losers. VOO's high P/E and heavy AI concentration present valuation risks, with the dividend yield at a low historical rate of 1.12%. AI will likely drive future earnings, but picking individual winners is challenging; index exposure captures sector shifts.
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VOOG has delivered higher one-year and five-year total returns, but with deeper drawdowns and more volatility than VOO. VOO is broader, more diversified, and offers a higher dividend yield at a lower expense ratio.
If you haven't thought about diversifying your equity portfolio internationally, perhaps the performance of non-U.S.
While most investors obsess over SPY and VOO, Vanguard Total International Stock Index Fund ETF Shares (NYSEARCA:VXUS) has quietly delivered 29% returns through mid-December 2025, crushing the S&P 500's 15% gain.
While Vanguard 500 Index Fund ETF Shares (NASDAQ:VOO) dominates the most popular ETF rankings with $1.5 trillion in assets and an industry leading 0.03% expense ratio, income investors should consider ProShares S&P 500Dividend Aristocrats ETF (NYSEARCA:NOBL) for superior cash flow.
The international ETFs have had quite the impressive year, outperforming the likes of the Vanguard S&P 500 ETF (NYSEARCA:VOO) as well as the Invesco QQQ Trust (NASDAQ:QQQ) so far this year while rolling over far fewer bumps in the road.
The CBOE Volatility Index (VIX) rising 30% within the past month didn't get in the way of inflows for the Vanguard S&P 500 ETF (VOO). The ETF notched just over $120.5 billion inflows through November 21, beating out last year's $116 billion.
VOO holds a much broader basket of large-cap U.S. stocks and offers a higher dividend yield than VUG VUG has delivered stronger total returns over one and five years but with higher volatility and a steeper maximum drawdown Both funds are low-cost and highly liquid, though VUG leans more heavily into the technology sector
WisdomTree U.S. LargeCap Fund is rated a hold, lacking a compelling case to replace the S&P 500. EPS uses an earnings-weighted methodology, offering lower valuations and slightly higher dividends but consistently underperforming VOO on risk-adjusted returns. EPS carries a higher expense ratio, increased liquidity risk, and greater concentration risk compared to VOO, with only marginal benefits in income and capital preservation.
Launched on September 9, 2010, the Vanguard S&P 500 ETF (VOO) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.