Vanguard S&P 500 ETF: Here’s why VOO is better than SPY

The Vanguard S&P 500 ETF (VOO) fund has done well in the past few months, helped by big tech companies like Nvidia, Microsoft, and Apple. VOO jumped to a high of $408.55, the highest level since April last year. It has soared by more than 27% from the lowest level in 2022.

Vanguard S&P 500 ETF is soaring

The Vanguard S&P 500 ETF is a major fund that tracks the S&P 500 index. It is a major fund with over $316 billion. It competes with other popular funds like the SPDR S&P 500 ETF (SPY) and the iShares S&P 500 ETF. The funds has over $408 billion and $330 billion, respectively.

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

The VOO ETF tracks the S&P 500 index, which focuses on the biggest American companies like Apple, Microsoft, Google, Meta Platforms, and Nvidia among others. It has an expense ratio of just 0.03%, meaning a $10,000 investment in the fund attracts a $3 fee annually.

In terms of returns, the fund has a dividend yield of 1.50%, a few points higher than the SPY ETF of 1.48%. Its five-year CAGR growth is 6.36%, which is higher than the SPY’s 5.77%. Most importantly, VOO tends to outperform the SPY fund. It has jumped by 20.23% in the past 12 months compared with SPY’s 19.88%.

Therefore, since the two funds track the same index, it makes sense to invest in the Vanguard S&P 500 ETF than the SPY. The only major caveat is that SPY is usually more liquid than the VOO ETF. Its avcrage daily volume is $1.43 billion compared to SPY’s $35.83 billion.

I believe that the S&P 500 index is one of the best places to pack your retirement money. And since you cannot invest in the index directly, VOO is the cheapest alternative.

VOO ETF stock price forecast

VOO chart by TradingView

The daily chart shows that the Vanguard S&P 500 ETF has been in a strong bullish trend in the past few months. It has moved above the important resistance level at $391.71, the highest level since August 16th. The shares have moved above the 50-day and 100-day exponential moving averages (EMA). It has also moved to the 78.6% Fibonacci Retracement level.

Therefore, there is a likelihood that the shares will continue rising as buyers target the next resistance point at $432, the highest point in June 2022. This price is about 6.95% above the current level.

thewealthiestinvestor.com is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of thewealthiestinvestor.com are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of thewealthiestinvestor.com websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and thewealthiestinvestor.com, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.