- VOO is the primary ETF to surpass $1 trillion in property beneath administration, pushed by sturdy inflows and low-cost funding demand.
- Traders proceed emigrate from SPY and IVV to VOO as a result of advantages of ultra-low expense ratios.
- From 2022 onwards, VOO’s speedy progress has outpaced its rivals and reshaped its dominance within the S&P 500 ETFs.
Vanguard’s VOO turned the primary exchange-traded fund to surpass $1 trillion in property beneath administration, a milestone that confirms the rising dominance of low-cost index investing.
The fund has attracted about $69 billion in web inflows to this point this 12 months, placing it on monitor for its strongest 12 months since its founding in 2010, in line with the Kobessi Letter. The surge in property has pushed VOO additional away from rival S&P 500 funds as buyers proceed to favor broad market publicity and low charges.
For the reason that market downturn in 2022, VOO’s progress has actually accelerated. Their property greater than tripled and outperformed their rivals. VOO at present manages extra property than competing S&P 500 ETFs IVV and SPY, with roughly $860 billion and $785 billion, respectively.
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VOO stays forward of long-time rival
Knowledge cited by The Kobeissi Letter, sourced from Bloomberg and Goldman Sachs, reveals that VOO has been steadily gaining floor through the years. All three main S&P 500 ETFs benefited from the inventory market’s sturdy rally, however VOO attracted a bigger share of investor cash.
From 2022 onwards, this pattern accelerated. VOO has prolonged its lead and reached a significant milestone of $1 trillion. In February 2025, it even surpassed SPY to change into the world’s prime ETF.
VOO tracks the identical S&P 500 index as its rivals. However buyers more and more assist its low prices. The fund’s expense ratio is simply 0.03%, whereas SPY’s expense ratio is 0.09%.
Low charges drive investor demand
This pattern reveals how investing is altering. Reasonably than predicting which particular person shares might be winners, increasingly persons are turning to low-cost index funds.
VOO’s important progress embodies this alteration. A part of VOO’s enchantment is Vanguard’s distinctive configuration. These are owned by the fund’s buyers themselves, which may considerably cut back bills. This cost-cutting technique continues to draw long-term buyers who simply desire a easy and inexpensive solution to make investments.
This 12 months specifically, VOO has outperformed its rivals. VOO attracted $71.5 billion in new capital in 2026, in line with ETF Tracker. In the meantime, IVV earned about $9 billion, with SPY far behind with $714 million.
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