VOO Reached a Key Milestone and Pairs Well With Bond ETFs

The third largest ETF recently reached the age of 13. Yes, the Vanguard 500 ETF (VOO) is now Taylor Swift’s lucky number. (Am I one of the first people to use Ms. Swift and Vanguard ETFs in the same sentence?)

As the father of a Jewish son, the significance of this age is meaningful. My son turned 13 in June, three months before VOO. In our tradition, he became a man when he then read from the Torah at his bar mitzvah. It was indeed a time for celebration.

Vanguard has a lot to celebrate about VOO. VettaFi was honored to join the asset manager at the New York Stock Exchange (NYSE) for an opening bell ceremony last week. VOO has $330 billion in assets.

Vanguard Team at the NYSE

VOO Is Gaining Market Share

In the past year, the Vanguard ETF pulled in $34 billion of new money, ahead of $25 billion and $3 billion for IVV and SPY, respectively. IVV and VOO both have net expense ratios of 0.03%, lower than SPY’s 0.09%. This modest fee has made them more appealing to advisors and retail investors. Vanguard even charges 1 basis point less for VOO than their admiral mutual fund share class Vanguard S&P 500 (VFIAX) even though the $410 billion VFIAX came to market first.

SPY appeals to many ETF traders due to its relatively high volume. However, VOO traded over 4 million shares on average over the last 50 days. This is ample liquidity to meet the needs of most. VOO rose 13% on an annualized basis since inception through September 2023. Said differently, investors would have seen a fivefold increase if they bought and held from the beginning. Of course, past performance is not indicative of future results.