VOO ETF review

Investing in a VOO Dividend ETF may be an excellent way to reap the benefits of the fund's dividend. However, you should consider some factors before you make your final investment decision. In this article, I'll discuss the VOO dividend history, how the fund selects its stocks, and the top 10 VOO holdings. In addition, I'll explain what makes a VOO stock ETF such an attractive option.

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VOO dividends

How often does VOO pay dividends?

VOO pays quarterly. Every three months VOO pays a dividend. If you were to hold all the stocks inside the S&P 500 you would get paid dividends more often than quarterly. The fund holds those dividend payments and pays them quarterly. Most Vanguard Dividend ETFs only pay quarterly. 

How much does VOO pay in dividends?

On average VOO yielded 1.6%. Keep in mind this most investors don't buy this ETF for the dividends. Furthermore, not all the stocks inside the S&P 500 pay a dividend. The dividend that you get paid from VOO is saved and paid out quarterly. 

Does VOO have downside protection?

VOO is a managed ETF by Vanguard that changes the weight of the investments inside of it. The top 10 holdings hold roughly 27% of all the weight of all the money invested. There are no options traded inside the managed ETF to offset any losses.  

Is VOO Leveraged?

No, VOO is actively managed and the only thing that gets adjusted is the weight of each investment. There aren't any options traded inside the fund to offset losses or gains. 

VOO pros and cons

Cons:

  1. You're not going to get high returns. In fact investing into the S&P 500 is considered the industry benchmark. 
  2. Total index funds tend to perform slightly better. 

Pros:

  1. VOO expense ratio is low. 
  2. It's highly traded so you can liquidate very easily. 
  3. VOO is diversified into well performing stocks. 
VOO manager


Is VOO Actively Managed?

Yes, (VOO) was created in 2010 and is managed by Michelle Louie a portfolio manager at Vanguard. 

VOO Dividend - History

Below is the dividend payment per share held and it's correlating pay date. 

Cash Amount Pay Date
$1.47 10/3/2022
$1.43 7/5/2022
$1.37 3/29/2022
$1.53 12/27/2021
$1.31 10/4/2021
$1.33 7/2/2021
$1.26 3/31/2021
$1.38 12/28/2020
$1.31 10/2/2020
$1.43 7/2/2020
$1.18 3/13/2020
$1.43 12/27/2019

What is VOO ex-dividend date?

The ex-dividend dates happen in March, June, September, and December. 

Ex-Dividend Date
9/28/2022
6/29/2022
3/24/2022
12/21/2021
9/29/2021
6/29/2021
3/26/2021
12/22/2020
9/29/2020
6/29/2020
3/10/2020
12/23/2019

What is VOO Expense Ratio?

0.03%. The S&P 500 is highly considered the standard for investing for returns. In fact for many investors it can yield better returns that working with an Advisory or Portfolio manager. Now I write this with  caution as I am not an investment advisor and legally can't advise anyone to invest into anything. That being said I encourage you to do some basic math when deciding if an investment advisor is going to be your best fit considering most of them aim to match the S&P 500.

Fees from an advisory can be anywhere between .5-3%. If their goal and average returns are on par with the S&P 500 then it would benefit you to invest it yourself at a fee of .03% compared to the 2% from the advisor. Do your due diligence and make an educated decision. 

Is VOO Diversified?

This ETF is is diversified in the top 500 companies. At the same time the top 10 holdings count at 27% of the whole ETF. Below is the weight of the top 10 holdings. The next few sections go over how its diversified as well so you can see if this type of sector weighting can be a good fit for your overall portfolio. 

Sector Weight
Information Technology 59.51%
Consumer Discretionary 17.57%
Financials 6.20%
Energy 5.36%
Health Care 11.37%

 

VOO Holdings - Top 10

Symbol Name Weight Price Change
AAPL Apple Inc 7.08% 142.66 1.22%
MSFT Microsoft Corp 5.29% 247.47 1.27%
AMZN Amazon.com Inc 2.77% 90.34 2.13%
TSLA Tesla Inc 1.85% 173.53 -0.29%
GOOGL Alphabet Inc 1.73% 93.71 -1.30%
BRK.B Berkshire Hathaway Inc 1.63% 306.04 0.07%
UNH UnitedHealth Group Inc 1.59% 547.53 0.85%
GOOG Alphabet Inc 1.55% 93.97 -1.24%
XOM Exxon Mobil Corp 1.41% 104.38 0.70%
JNJ Johnson & Johnson 1.40% 177.2 0.02%

VOO Sector Weight

Sector Weight

Technology

23.45%

Healthcare

15.31%

Financial Services

13.52%

Consumer Cyclical

10.52%

Industrials

8.63%

Consumer Defensive

7.33%

Communication Services

7.31%

Energy

5.33%

Real Estate

2.72%

Utilities

2.43%

Basic Materials

2.26%

About VOO Stock ETF

VOO is an ETF the is designed to give the same returns as the S&P 500. Keep in mind that the S&P 500 is considered the benchmark and if you aren't getting the same returns it could benefit you to invest into this ETF. 

How long has VOO been around?

09/07/2010 is the VOO inception date. VOO is managed by a Vanguard.

Is VOO a good long term investment?

I feel like VOO is an investment that you win by not losing. It is a great investment for most people in my opinion. It's an investment that most people can use to invest and get good enough returns.

 

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