What it owns
Tiny pieces of Apple, Microsoft, NVIDIA, Amazon, Google, and 513 other big US companies.
Top 10 holdings = ~36% of the fund
What Is VOO? Vanguard's S&P 500 ETF, Explained
0.03%
Yearly fee
$3 per $10,000
$1.51T
Assets managed
Largest ETF in the world
518
Holdings
Every S&P 500 company
1.20%
Dividend yield
Paid quarterly
2010
Launched
Sep 7, 2010
Vanguard
Issuer
Founded 1975
VOO in 30 seconds
Four questions, four answers. If you read nothing else on this page, read these.
What it costs
0.03% per year. On a $10,000 investment, that's $3 a year. On $100,000, it's $30 a year.
~10× cheaper than a typical mutual fund
How you make money
Two ways: the share price goes up as the companies inside grow, and you receive cash dividends every 3 months.
Long-term average: ~10% per year (pre-inflation)
Who runs it
Vanguard, founded in 1975 and owned by its own fund investors, manages roughly $9 trillion globally.
Inventor of the index fund (Jack Bogle, 1976)
What's inside VOO
When you buy a share, you own a slice of each of these. The biggest companies have the biggest slice.
Top 10 holdings
As of Feb 28, 2026The top 10 account for about 36% of VOO. The other ~508 companies make up the remaining 64%. This is called market-cap weighting: bigger companies get bigger weight. See which 10 companies drive that 36% →
Sector breakdown
As of Feb 28, 2026 Technology33.1% Financials12.1% Communications10.8% Consumer Cyclical10.1% Healthcare9.9% Industrials8.7% Consumer Defensive5.3% Energy3.1% Utilities2.5% Real Estate2.3% Basic Materials2.1%
Technology is roughly a third of the fund. That's because the biggest US companies right now are tech companies. VOO follows the market; it doesn't overweight any sector on purpose.
How VOO has performed
Annualized total returns through early 2026, assuming dividends were reinvested. These are backward-looking. Future returns will be different.
1 year
+26.3%
$10,000 → $12,630
3 years (CAGR)
+14.8%
$10,000 → $15,140
5 years (CAGR)
+16.1%
$10,000 → $21,100
10 years (CAGR)
+13.1%
$10,000 → $34,280
Since inception (Sep 2010, ~15 years)
+14.0% / year
$10,000 at launch → roughly $72,000 today
Not every year is a winner. VOO fell about 18% in 2022 and ~37% during the 2008 crash (via the index it tracks). The average masks a bumpy ride. Source: Vanguard, Yahoo Finance, monthly close data at voo-monthly.json.
What could $10,000 in VOO become?
Assuming a 10% annual return (the long-term S&P 500 average, before inflation). Pick an amount and a timeframe.
Starting amount
Time horizon
Projected value
$67,275
$57,275 gain 6.7× your money
This is an illustration using a fixed 10% annual return. Real returns vary year to year. Not investment advice.
Why so many people buy VOO
Rock-bottom fees
0.03% a year. Over 30 years, the gap between a 0.03% fund and a 1% fund on $100,000 is roughly $200,000 in lost growth. Fees compound too, in the wrong direction.
$3/year on $10,000
Built-in diversification
You own pieces of 500 companies across 11 sectors. If one company blows up, you barely notice. You don't need to pick winners. You own them all.
No single stock is >8% of the fund
Tax-efficient
ETFs rarely distribute capital gains. VOO's structure (a share class of Vanguard's main 500 Index Fund) makes it one of the most tax-efficient S&P 500 funds you can own in a regular (taxable) brokerage account.
Zero capital-gains distributions most years
Risks to know before you buy
Every investment has trade-offs. Here are VOO's main ones.
Concentrated at the top
The 10 biggest companies make up ~36% of VOO. Most of those are tech. If big tech has a bad stretch, VOO feels it. Read why VOO's tech concentration matters, or see how much of your money is in those 10 stocks →
Top 10 ≈ 36% of the fund
US-only
Every company in VOO is a US company. You get zero exposure to Europe, Asia, or emerging markets. If the US stock market underperforms the rest of the world for a decade (it has happened before), VOO alone won't capture that.
0% international exposure
Market-wide drawdowns
VOO fell about 18% in 2022, ~34% briefly in early 2020, and the S&P 500 fell ~37% in 2008. Diversification doesn't protect you when the whole market drops. Only invest money you won't need for 5+ years.
Worst year since VOO launched: −18.2% (2022)
Is VOO right for you?
Good fit
- You have a 5+ year time horizon
- You want one simple core holding
- You prefer "set it and forget it"
- You believe US companies will keep growing over the long run
- You want the lowest fees possible
Could work, with complements
- You want international exposure: add a fund like VXUS
- You want bonds for stability: add BND or similar
- You want more small-cap exposure: add VB or VTI instead of VOO
- You want higher dividend income: pair with SCHD
Probably not right for you
- You need the money in the next 1–3 years
- You can't stomach seeing your balance drop 20%+
- You want income now (the 1.2% yield is modest)
- You want to pick individual stocks or time the market
- You need guaranteed returns
VOO vs. the alternatives
How does VOO stack up against the other big S&P 500 and US stock funds? Click a comparison.
VOO vs SPY
Both track the S&P 500. VOO is cheaper; SPY trades more.
Compare →
VOO vs VTI
500 big companies vs. nearly every US company.
Compare →
VOO vs SCHD
Growth vs. dividend income.
Compare →
VOO vs QQQ
500 companies vs. 100 tech-heavy Nasdaq stocks.
Compare →
VOO vs IVV
Two near-identical S&P 500 funds. Does it matter which?
Compare →
All comparisons
Every VOO head-to-head on the site.
See all →
Learn more about investing in VOO
How to buy VOO
Step-by-step: pick a broker, place your first buy, set up automatic investing.
Read →Dollar-cost averaging
Why most people should buy VOO on a schedule, not in a single lump sum.
Read →VOO's concentration risk
The top 10 holdings are 36% of the fund. How much risk does that really add?
Read →Should you reinvest VOO dividends?
DRIP versus cash — how much extra a reinvested $10K becomes over 15 years.
Read →"VOO and chill"
The minimalist strategy: buy VOO, add to it automatically, don't look too often.
Read →VOO in a Roth IRA
Why VOO is one of the most-held funds inside Roth IRAs, and how to buy it there.
Read →VOO tax guide
Dividends, capital gains, qualified rates, and why ETFs are tax-efficient.
Read →Buying VOO from outside the US
Non-US investor? Here's what you can buy, and the UCITS alternatives to consider.
Read →All investing guides
Every guide on the site.
Browse →Frequently asked questions
Is VOO a good investment for beginners?
For most beginners, yes. You get instant diversification across 500 large US companies, pay only 0.03% a year in fees, and don't need to pick individual stocks. It still carries full stock-market risk (it can drop 15-30% in a bear market), so only invest money you don't need for at least 5 years.
Is VOO the same as the S&P 500?
Almost. The S&P 500 is a list of ~500 large US companies published by S&P Global. VOO is a fund that buys and holds those exact stocks in the same proportions. So owning VOO is the easiest way to own the S&P 500. VOO's return will trail the index by about 0.03% a year because of its fee.
How much money do I need to start investing in VOO?
At today's share price you'd need a few hundred dollars to buy one full share. But most major brokers (Fidelity, Schwab, Robinhood, and Vanguard itself) now support fractional shares, so you can invest any dollar amount, even $1. Interactive Brokers and a few legacy brokerages don't.
Does VOO pay dividends? How often?
Yes. VOO pays a cash dividend every 3 months, in March, June, September, and December. The current yield is about 1.2%, which works out to roughly $7–$8 per share per year. You can either receive the cash or reinvest it automatically with most brokers (set DRIP in your account settings).
What's the difference between VOO and SPY?
Both track the S&P 500. VOO charges 0.03% a year, SPY charges 0.09%. For a long-term buy-and-hold investor, VOO is cheaper and usually the better pick. SPY trades more actively and has a deeper options market, so day traders and institutions often prefer it. See our full VOO vs SPY comparison for the details.
Can VOO lose money? Is it safe?
VOO can absolutely lose money. It fell 18.2% in 2022, ~34% briefly in early 2020, and ~37% in 2008. It's diversified across 500 companies, so no single business going bankrupt can wipe you out. But when the broad US market drops, VOO drops with it. Over rolling 10-year periods it has historically recovered, but there are no guarantees.
Can I hold VOO in a Roth IRA or 401(k)?
Yes, and it's one of the most popular holdings in both. Inside a Roth IRA, all future growth and withdrawals (after age 59½) are tax-free. Inside a 401(k) or traditional IRA, growth is tax-deferred until you withdraw. Since VOO is already very tax-efficient, the benefit of sheltering it is largest inside a Roth.
What has VOO historically returned per year?
Since VOO launched in September 2010, it has returned roughly 14% per year on average (through early 2026), helped by an unusually strong bull market. The S&P 500's very long-term historical average, going back to 1957, is closer to 10% per year before inflation. Use the 10% figure for planning purposes; the recent 14% is unlikely to continue forever.