Own the 500 largest U.S. companies in a single fund
VOO is Vanguard's S&P 500 ETF — a single fund that gives you ownership in the 500 largest publicly traded companies in the United States. When you buy a share of VOO, you're buying a tiny piece of Apple, Microsoft, Amazon, Google, and 496 other industry leaders.
With an expense ratio of just 0.03%, VOO is one of the cheapest ways to invest in the broad U.S. stock market. That means for every $10,000 you invest, you pay just $3 per year in fees.
VOO tracks the S&P 500 index, which is weighted by market capitalization. This means larger companies like Apple and Microsoft make up a bigger portion of the fund than smaller companies in the index.
The fund automatically rebalances as companies enter and leave the S&P 500. You don't need to pick stocks or decide when to buy and sell individual companies — the index does the work for you.
Expense ratio: 0.03% — among the lowest in the industry
Dividend yield: Approximately 1.3–1.5% annually
Holdings: 500 large-cap U.S. stocks
Minimum investment: Price of 1 share (fractional shares available at most brokers)
The S&P 500 has returned an average of roughly 10% per year since its inception in 1957, or about 7% after adjusting for inflation. VOO, launched in 2010, has closely tracked this benchmark.
While there have been significant downturns — the index dropped about 34% during the COVID crash in March 2020 and fell roughly 50% during the 2008 financial crisis — it has recovered from every decline in history and gone on to reach new highs.
Past performance does not guarantee future results. The stock market can and does lose value for extended periods. Only invest money you won't need for at least 5–10 years.
Ultra-low expense ratio (0.03%)
Instant diversification across 500 companies
Decades of strong historical returns
Extremely liquid — easy to buy and sell
No stock-picking required
U.S.-only exposure — no international diversification
Heavily weighted toward large-cap tech stocks
Can drop 30–50% during market crashes
No guaranteed returns
Doesn't include small-cap or mid-cap stocks
VOO is one of the most popular ETFs in the world for good reason — it's suitable for almost any investor with a long-term time horizon.
Beginner investors: A single fund that gives you broad market exposure without needing to understand individual stocks.
Long-term savers: Ideal for retirement accounts and goals that are 10+ years away.
Cost-conscious investors: The 0.03% expense ratio means almost all of your money stays invested.
Open a brokerage account: Use a low-cost broker like Vanguard, Fidelity, or Schwab. Many offer commission-free ETF trading.
Decide your investment amount: You can start with the price of one share, or use fractional shares to start with as little as $1.
Search for ticker "VOO": Place a market order during trading hours, or a limit order to set your maximum price.
Set up automatic investments: Most brokers allow recurring purchases — set it and forget it with dollar-cost averaging.