This Relentless Vanguard ETF Will Crush the S&P 500

As the U.S. stock market continues its bull run, investors are on the lookout for funds that can outperform the broader market. One ETF that has caught the attention of many is the Vanguard S&P 500 ETF (VOO). With its low expense ratio and broad market exposure, VOO has the potential to crush the S&P 500 in the long run.

VOO's exposure to the top 100 companies by market cap, which account for 92% of its assets, positions it to benefit from the strong performance of large-cap stocks. Additionally, its low expense ratio of 0.03% allows for more of the fund's returns to be passed on to investors. This combination of broad exposure and low fees makes VOO an attractive option for investors seeking to gain exposure to the U.S. stock market.

However, it is essential to consider the role of the ETF's expense ratio and management style in its potential outperformance. Vanguard's Total Stock Market ETF (VTI) has consistently outperformed the S&P 500, with a 10-year total return of 238.59% compared to 196.17% for the S&P 500 (SPY). This outperformance can be attributed to its low expense ratio and passive management style. VTI's expense ratio of 0.03% is significantly lower than the industry average of 0.42% (Source: Vanguard, Morningstar), leading to higher net returns for investors. Its passive management style, which seeks to track the performance of the CRSP U.S. Total Market Index, allows VTI to minimize trading costs and maximize long-term returns.



In conclusion, the Vanguard S&P 500 ETF (VOO) has the potential to outperform the broader market due to its broad exposure to the U.S. stock market and low expense ratio. Its focus on large-cap stocks and passive management style contribute to its potential for long-term success. However, investors should carefully consider the ETF's expense ratio and management style when evaluating its potential outperformance. By doing so, they can make informed decisions about their investments and position themselves to benefit from the ongoing bull market.