VOO Doesn't Hold SpaceX, Taiwan Semiconductor, Samsung Electronics, SK Hynix, or ASML. Meet the Vanguard ETF That Does.
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is the largest exchange-traded fund (ETF) in the world -- having surpassed $1 trillion in net assets earlier this year. With just a 0.03% expense ratio, or $3 for every $10,000 invested, it provides a low-cost way to invest in the S&P 500 (SNPINDEX: ^GSPC) . An S&P 500 index fund is a simple, hands-off way to own a basket of companies that can perform well over the long term. The strategy has been effective historically -- producing annualized total returns of 9% to 10% . And even Warren Buffett has put some of Berkshire Hathaway's capital to work in the Vanguard S&P 500 ETF in the past. However, like any index, the S&P 500 has qualities that may not appeal to some investors, such as its focus on U.S. large-cap stocks and its slow pace in adding recently public companies, regardless of their value. Continue reading