Vanguard S&P 500 ETF (VOO) Sees Strong Yearly Gains Despite Recent Fluctuations

The Vanguard S&P 500 ETF (VOO), which tracks the S&P 500 index, has been a standout performer in the market despite some recent volatility. As of November 6, 2024, VOO has seen a significant yearly return of 36.88%, outpacing many individual stocks.

Despite a minor dip of 0.89% over the past five days, VOO has risen by 33.01% over the past year, indicating its long-term stability and growth potential. The ETF’s strong performance is largely attributed to its diversified portfolio, which includes top holdings such as Apple Inc. (AAPL), Microsoft Corporation (MSFT), NVIDIA Corporation (NVDA), and Amazon.com, Inc. (AMZN).

Analysts have a positive outlook on VOO, with TipRanks’ unique ETF analyst consensus rating it as a Moderate Buy. The average price target for VOO is $594.33, suggesting an upside of 13.47% from its current price.

Investors considering VOO are advised to adopt a dollar-cost averaging strategy, which tends to yield better returns with less hassle compared to investing in individual stocks. This approach is particularly recommended given that approximately 90% of individuals who invest in individual stocks tend to lag behind the broader market.

The ETF’s expense ratio of 0.03% and a dividend yield of 1.30% make it an attractive option for long-term investors seeking broad market exposure with minimal fees.