VOO (Vanguard S&P500 ETF), assets under management 9,740 billion dollars · expense ratio 0.03%
VOO is listed with assets under management of 9,740 billion dollars and an expense ratio of 0.03%. The rationale presented is that, as of 15, more than 90% of actively managed large-cap funds underperformed the S&P 500.
15Looking at the period of 90 years, more than 500% of actively managed large-cap funds reportedly underperformed the S&P 1 index. The performance comparison for that period was analyzed including the impact of fees on performance. The comparison was mainly with actively managed funds charging management fees of more than
Actively managed funds often charge management fees of more than 1%. High fees affect long-term compound returns. The article points to this as a major reason for the weaker performance of actively managed funds.
The expense ratio of VOO (Vanguard S&P 500 ETF) is 0.03%. This fee structure is described as passing through index performance to investors almost exactly as it is. VOO is presented as an alternative that allows investors to receive the index return without losses.
VOO's assets under management are 9,740billion dollars. Its scale provides broad exposure to U.S. large-cap stocks. The article adds that this demonstrates its standing as an ETF tracking a leading large-cap index.
The article concludes that using low-cost passive ETFs can help investors reduce the returns lost to fees. VOO is presented as a leading example. The piece ends by encouraging investors to review the cost structure.
Sources: The Motley Fool
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.