VOO ETF Performance and Dividend Yield: A Comprehensive Overview

The Vanguard S&P 500 ETF (VOO) is up 1.37% in the past five days and 9.39% year-to-date. TipRanks' unique ETF analyst consensus gives VOO a Moderate Buy rating with a street average price target of $639.62, implying a 9.23% upside. The ETF pays dividends with a yield of 1.18% and has a Smart Score of seven, indicating it will likely perform in line with the market.

Vanguard's exchange-traded funds (ETFs) have consistently outperformed the S&P 500 index, particularly in the growth and mega-cap sectors. The Vanguard Growth ETF (VUG) and the Vanguard Mega Cap Growth ETF (MGK) have demonstrated strong performance over the past decade, highlighting the potential of high-growth strategies.

The Vanguard Growth ETF, which tracks the CRSP US Large Cap Growth Index, holds 165 stocks representing 85% of the total market capitalization. Over the past 10 years, it has generated a compound annual return of 16.2%, compared to the S&P 500's 12.8% [1]. This performance is driven by a significant concentration in top tech stocks such as Microsoft, Nvidia, Apple, Amazon, and Meta Platforms, which collectively represent 44.2% of the ETF's portfolio [1].

The Vanguard Mega Cap Growth ETF, which tracks the CRSP US Mega Cap Growth Index, has an even more concentrated portfolio, holding just 69 stocks representing 70% of the total market capitalization. Over the past 10 years, it has delivered a compound annual return of 17%, outperforming the S&P 500 by a significant margin [1]. The top five holdings in this ETF—Microsoft, Nvidia, Apple, Amazon, and Broadcom—account for 50.3% of the portfolio [1].

While these high-growth ETFs offer the potential for significant returns, they also come with higher risks due to their high concentration in the technology sector. Both ETFs have a technology sector weighting of over 60%, which exposes investors to the volatility of tech stocks. Therefore, investors should consider these ETFs as part of a diversified portfolio to mitigate risk [1].

The S&P 500, on the other hand, has delivered a compound annual return of 10.5% since its establishment in 1957, even after accounting for every sell-off, correction, and bear market. Its diversified composition and steady returns make it a reliable choice for long-term investors [1, 2].

In conclusion, while the Vanguard Growth ETF and the Vanguard Mega Cap Growth ETF have demonstrated strong performance, investors should approach these high-growth strategies with caution and consider them as part of a diversified portfolio.

References:
[1] https://www.fool.com/investing/2025/07/26/2-vanguard-etfs-consistently-beat-sp-500-index/
[2] https://www.nasdaq.com/articles/2-unstoppable-vanguard-etfs-consistently-beat-sp-500-index