S&P 500 ETF Vanguard (VOO-A) Quote - Press Release (2024)

Motley Fool - Mon Apr 15, 4:45AM CDT

Ken Griffin ranks among the greatest hedge fund managers of all time. His net worth of $36.7 billion -- built largely through Griffin's hedge fund, Citadel -- is one of the biggest proofs behind that claim.

Much of Griffin's tremendous success has resulted from his out-of-the-box thinking. So what's the billionaire investor's biggest holding right now? You might be surprised.

Ruling out the "Magnificent Seven" and more

Citadel's portfolio includes thousands of stocks. Name a stock, and there's a pretty good chance Griffin has at least a small position in it.

Several so-called "Magnificent Seven" stocks have been huge winners in 2023 and 2024. Griffin owns all of them. Four of them rank among Citadel's top 10 holdings: Nvidia, Microsoft, Amazon, and Meta Platforms.

What about Nvidia's biggest rival -- Advanced Micro Devices? Griffin's stake in AMD totaled $885 million at the end of 2023, enough to make it Citadel's fifth-largest position.

However, none of these stocks is Griffin's biggest holding. But they're part of it.

Griffin's biggest bet

I won't build the suspense any further. Griffin's biggest bet is on... the SPDR S&P 500 ETF Trust(NYSEMKT: SPY). That's right, his hedge fund is invested more heavily in a relatively safe S&P 500 index exchange-traded fund (ETF) than in any individual stock.

As of the end of 2023, Citadel owned 5.52 million shares of SPY worth $2.63 billion. This stake comprised 2.64% of the hedge fund's total portfolio, well ahead of the 1.81% for Nvidia.

Imagine Dale Earnhardt Jr. choosing a Kia Soul as a personal vehicle. Or perhaps Chef Gordon Ramsay picking boiled potatoes as his favorite dish. There's nothing wrong with a Kia Soul or boiled potatoes, but you'd expect something more exciting from these celebrities. Similarly, I suspect most of us would have thought Griffin's top holding would be almost anything but an index ETF.

So why is SPY Citadel's biggest holding? Maybe because its record of delivering solid returns over the long term is good. The ETF also provides a convenient way to own stakes in the 500 largest companies in the U.S.

Griffin isn't the only billionaire who likes S&P 500 index funds, by the way. Warren Buffett revealed years ago his will recommends much of the cash his family receives as an inheritance be invested in an S&P 500 index fund. Buffett's Berkshire Hathaway investment portfolio includes SPY.

I spy an even better pick

Is the SPDR S&P 500 ETF Trust a good choice for investors who aren't billionaires? I think so. However, I spy (pun fully intended) an even better pick: the Vanguard S&P 500 ETF(NYSEMKT: VOO).

Both ETFs attempt to track the performance of the S&P 500 index. Buying and holding either fund will likely pay off handsomely over the long run. The main reason I like VOO better than SPY, though, is the cost. The Vanguard ETF's annual expense ratio is 0.03% compared to 0.0945% for SPY. Granted, this is a minuscule difference. But why pay more when you don't have to?

VOO gets a stamp of approval from both Griffin and Buffett too. The ETF is in Citadel's and Berkshire Hathaway's portfolios. Buffett even suggested that the trustee managing his family's inheritance use a Vanguard S&P 500 index fund.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon, Berkshire Hathaway, Meta Platforms, Microsoft, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

S&P 500 ETF Vanguard (VOO-A) Quote - Press Release (2024)

FAQs

What is the VOO prediction for Vanguard S&P 500 ETF? ›

VOO 12 Month Forecast

Based on 504 Wall Street analysts offering 12 month price targets to VOO holdings in the last 3 months. The average price target is $537.56 with a high forecast of $628.83 and a low forecast of $441.16.

Is VOO a good buy right now? ›

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for VOO ETF to perform well in the short-term period. We have upgraded our analysis conclusion for this ETF since the last evaluation from a Sell to a Buy candidate.

What is the average yearly return on VOO? ›

Vanguard S&P 500 (VOO): Historical Returns

In the last 30 Years, the Vanguard S&P 500 (VOO) ETF obtained a 10.36% compound annual return, with a 15.12% standard deviation.

Is it worth investing in Vanguard S&P 500? ›

Even Warren Buffett recommends it above any other investment. There's a good reason for that. Its low expense ratio and tight index tracking make it a top choice for anyone looking to match the returns of the S&P 500. Last year, the exchange-traded fund produced a total return of 26.3%.

Is VOO going to split? ›

The Vanguard Group Inc. is tweaking its S&P 500 exchange-traded fund in a way that will make it more attractive to large investors and frequent traders. The firm today said that the $11 billion Vanguard S&P 500 ETF (VOO) will undergo a 1-for-2 reverse split next month.

What is Vanguard's best performing ETF? ›

Vanguard High Dividend Yield ETF (VYM)

The better Vanguard ETF for their needs is likely VYM, which delivers a higher 2.9% 30-day SEC yield by targeting the FTSE High Dividend Yield Index. It also charges the same expense ratio as VIG does, at 0.06%.

Why is VOO so popular? ›

In fact, Vanguard's index funds and ETFs (including VOO, which we just discussed) are popular choices with investors, thanks in part to their low costs and competitive long-term performances.

Is VOO too expensive? ›

VOO has an expense ratio of 0.03%, which means that for every $10,000, they charge a $3 management fee. If you were to invest $10,000 and VOO provided a 5% return each year, your total costs would be $39 over 5 years.

How often does VOO pay dividends? ›

VOO has a dividend yield of 1.32% and paid $6.41 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.

Is VOO good for Roth IRA? ›

Exchange-traded funds (ETFs) are a good way for investors to gain exposure to these three categories. The best U.S. stock ETFs for Roth IRAs are funds in a seven-way tie: IVV, VOO, SPLG, SPTM, ITOT, VTI, and BKLC.

How much do I need to invest in VOO? ›

For example, the minimum investment for VFIAX is $3,000, while there is no minimum investment for VOO.

Which S&P 500 ETF is the best? ›

Vanguard S&P 500 ETF

It comes with an ultra-low expense ratio of 0.03% and a 30-day SEC yield of 1.36%. The VOO is well diversified across economic sectors, despite its top holdings – Microsoft, Apple, Nvidia (NVDA 2.57%), Amazon, and Alphabet – all from the tech sector.

What ETF has the highest 10-year return? ›

1. VanEck Semiconductor ETF
  • 10-year return: 24.37%
  • Assets under management: $10.9B.
  • Expense ratio: 0.35%
  • As of date: November 30, 2023.

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What is the 20 year return of the S&P 500? ›

Average returns
PeriodAverage annualised returnTotal return
Last year25.7%25.7%
Last 5 years14.2%94.5%
Last 10 years15.3%316.2%
Last 20 years10.6%651.5%

What will VOO be worth in 2030? ›

Vanguard S&P 500 ETF Stock ( VOO) is expected to reach an average price of $ 677.28 in 2030, with a high forecast of $ 725.36 and a low forecast of $ 629.20.

What is the return of the VOO S&P 500 ETF? ›

VOO - Vanguard S&P 500 ETF
  • 11.79%YTD daily total return.
  • 30.85%1-year daily total return.
  • 9.77%3-year daily total return.

What is the price prediction for the S&P 500 Index Fund? ›

The average price target for Schwab S&P 500 Index Fund- Select Shares is $91.30. This is based on 501 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $106.87 ,the lowest forecast is $75.39.

What is the best S&P 500 index fund on Vanguard? ›

Vanguard 500 Index Fund Admiral Shares (VFIAX)

The present-day equivalent of VFINX available to retail investors is VFIAX. This low-cost mutual fund tracks the S&P 500 index for a 0.04% expense ratio. To put it in perspective, if you invested $10,000 in VFIAX, you could expect to pay just $4 in annual fees.

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