Vanguard S&P 500 ETF (VOO) Performance and Holdings Analysis.

The Vanguard S&P 500 ETF (VOO) is up 2.47% in the past five days and 10.36% year-to-date. TipRanks' analyst consensus rates VOO as a Moderate Buy with an average price target of $655.24, implying a 10.52% upside. The ETF's five holdings with the highest upside potential are Loews, Charter Communications, Salesforce, Fair Isaac, and Moderna, while its five holdings with the greatest downside potential are Palantir Technologies, Paramount Skydance, Garmin, Ebay, and Viatris. VOO pays dividends, offering investors regular income, with a yield of 1.17% as of today.

The Vanguard S&P 500 ETF (VOO) has achieved a significant milestone, becoming the first exchange-traded fund (ETF) in history to top $700 billion in assets under management (AUM). This landmark year for VOO began with its dethroning of the SPDR S&P 500 ETF Trust (SPY) as the world’s largest ETF earlier in 2025. As of the latest data, VOO’s AUM stands at approximately $709 billion, surpassing SPY’s $647.7 billion and iShares Core S&P 500 ETF (IVV) at $645 billion [1].

The fund’s rapid growth can be attributed to several factors, including strong stock market gains, Vanguard’s investor-friendly reputation, ultra-low expense ratios, a better tax structure, and the dividend reinvestment option. So far in 2025, VOO has attracted $74 billion in net new money, more than triple the inflows of its nearest competitor, iShares 0-3 Month Treasury Bond ETF (SGOV), which added $23.8 billion. If the current pace holds, VOO is set for another $100 billion-plus inflow year, following a record $117 billion in 2024 [1].

The S&P 500 has been on a solid surge driven by optimism over AI trade, a solid earnings season, and expectations that the Federal Reserve will cut rates in September. The S&P 500’s earnings picture remains strong and resilient, with total Q2 earnings of S&P 500 companies up 11.6% year over year on 5.9% revenue growth. Aggregate Q2 earnings are on track for a new all-time quarterly record, with 80.4% of companies beating EPS estimates and 79.1% beating revenue estimates [1].

The latest economic data have raised the odds for the Federal Reserve to lower interest rates when it next meets in September. Lower interest rates will benefit the stocks, which are more sensitive to borrowing costs, and will also ramp up consumer spending, boding well for economic growth. Additionally, President Trump’s announcement of a 100% tariff on semiconductor imports, with exemptions for companies manufacturing in the United States, has benefited major players like Apple (AAPL) and Taiwan Semiconductor Manufacturing (TSM) [1].

NVIDIA (NVDA) and Microsoft (MSFT) have significantly contributed to VOO’s performance. NVIDIA shares have gained nearly 90% from their early-April low and 22% since the start of the year, while Microsoft shares have climbed more than 110% since the debut of OpenAI’s ChatGPT in November 2022 [1].

VOO’s structure and tax efficiency have also been instrumental in attracting cost-conscious retail investors and advisors. It does not have any restrictions and can lend out shares to earn extra. It also reinvests dividends in the index until paid out quarterly, thereby increasing returns from the fund. VOO is more tax-efficient than its counterparts, thanks to its open-end structure and in-kind creation/redemption mechanisms. VOO has a Zacks ETF Rank #1 (Strong Buy) [1].

The Vanguard S&P 500 ETF (VOO) has seen impressive performance, with a 2.47% increase in the past five days and a 10.36% year-to-date gain. TipRanks' analyst consensus rates VOO as a Moderate Buy with an average price target of $655.24, implying a 10.52% upside. The ETF’s five holdings with the highest upside potential are Loews, Charter Communications, Salesforce, Fair Isaac, and Moderna, while its five holdings with the greatest downside potential are Palantir Technologies, Paramount Skydance, Garmin, eBay, and Viatris. VOO pays dividends, offering investors regular income, with a yield of 1.17% as of today [2].

References:
[1] https://www.nasdaq.com/articles/vanguards-voo-becomes-first-etf-cross-700b
[2] https://seekingalpha.com/article/4812216-trinity-capital-the-12-9-percent-dividend-yield-remains-one-of-the-best-in-the-bdc-space