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How to Buy the Vanguard S&P 500 ETF (VOO)

Learn how to buy VOO in 5 easy steps and why this popular index fund is a portfolio must-have.

The Vanguard S&P 500 ETF (VOO) is a low-cost, passively managed fund that seeks to replicate the performance of the S&P 500 Index, encompassing 500 of the largest US companies. Ideal for diversified, long-term investments, VOO offers broad exposure to leading sectors like technology, healthcare and finance, making it a core holding for many investors seeking equity market growth.

How to buy shares in the Vanguard S&P 500 ETF

  1. Open a brokerage account. Choose from our top broker picks or compare brokers in depth. Then, complete an application.
  2. Fund your account. Add money to your account via bank transfer, debit card or credit card.
  3. Search the platform by ticker symbol. TSLA in this case.
  4. Choose an order type. Place a market order or limit order with your preferred number of shares or dollar amount.
  5. Submit the order. It’s that simple.
  6. The whole process can take as little as 15 minutes. You’ll need a smartphone or computer, an internet connection, your passport or driving license and a means of payment.

Our top broker picks for buying the Vanguard S&P 500 ETF

Top pick for stock bonuses

Go to site
  • Trade stocks, options, ETFs, mutual funds, alternative asset funds
  • $0 commission on stocks, ETFs and options with no options contract fees
  • Get up to $1,000 in stock when you open and fund a new account within 30 days
  • Access to a financial planner
Customer must fund their Active Invest account with at least $50 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

Top pick for investing by theme

Go to site
  • Trade $0 commission stocks & ETFs with as little as $1
  • Get 4% annual equivalent rate on your cash
  • Earn up to $300 with qualifying deposits
  • Discover new opportunities with Opto's AI-driven thematic investing system
  • Theme and ETF screener

Best for mobile trading

Go to site
  • Trade stocks, options, futures, currencies, crypto, precious metals and more
  • Mobile, browser and desktop trading platforms
  • Earn 3.83% APY on your uninvested cash

Understanding the Vanguard S&P 500 ETF

The Vanguard S&P 500 ETF (VOO) seeks to track the performance of the S&P 500 Index, which includes 500 of the largest publicly traded US companies. This ETF is passively managed and aims to reflect the overall performance of the US equity market’s large-cap segment. VOO covers a broad range of sectors, including technology, healthcare, finance, consumer discretionary and industrials. Its top holdings typically include leading companies like Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Alphabet (GOOGL), providing investors with exposure to some of the most influential firms in the global economy.

Performance and historical returns

Historically, the Vanguard S&P 500 ETF (VOO) has delivered returns that closely mirror the S&P 500 Index, which has shown an average return of about 10% over the past 10 years.(1) While past performance is not indicative of future results, VOO has demonstrated resilience and growth, especially over extended periods. Investors often favor VOO for its consistent performance, low volatility relative to individual stocks and ability to recover from market downturns.

Benefits of investing in VOO

  • Diversification. VOO provides exposure to 500 large-cap US companies across various sectors, thereby reducing the risk associated with investing in individual stocks.
  • Low cost. The ETF is known for its low expense ratio, which is significantly lower than many actively managed funds. This helps investors keep more of their returns over time.
  • Passively managed. As a passively managed fund, VOO aims to replicate the performance of the S&P 500 Index rather than outperform it. This approach often results in lower fees and less frequent trading, which can be advantageous for long-term investors.
  • Liquidity. VOO is highly liquid, meaning it is easy to buy and sell shares without significantly affecting the market price. This is important for investors who might need to access their funds quickly.
  • Historical performance. While past performance doesn’t guarantee future results, the S&P 500 has historically delivered strong long-term returns, making VOO a favored choice for investors looking to build wealth over time.

Drawbacks of investing in VOO

  • Market risk. Although VOO is diversified within the large-cap segment, it is still subject to overall market risk. Economic downturns, market corrections and systemic risks can lead to losses.
  • Limited exposure. VOO focuses exclusively on large-cap US companies, providing limited exposure to small-cap stocks, international markets and emerging economies. This can hinder portfolio performance during periods when these other segments outperform large-cap stocks.
  • Sector concentration. The S&P 500 Index can sometimes be heavily weighted towards specific sectors, such as technology. This sector concentration can increase the risk if a particular sector underperforms.
  • Passive management. While passive management leads to lower costs, it also means that the ETF does not actively seek to outperform the market. Investors looking for strategies to outperform the S&P 500 might find this approach limiting.
  • Dividend yield. VOO tends to have lower dividend yields compared to some other investment options, such as dividend-focused ETFs or individual dividend stocks.

Is now a good time to buy the Vanguard S&P 500 ETF?

Determining whether now is a good time to buy the Vanguard S&P 500 ETF (VOO) depends on various factors, including market conditions, economic outlook and your individual financial goals. As a long-term investment, VOO is designed to provide broad exposure to the US stock market, mirroring the performance of the S&P 500. Historically, the market has trended upwards over long periods, so many investors consider VOO a solid choice for a diversified portfolio. Consider consulting with a financial advisor to ensure it aligns with your investment strategy and current economic conditions.

Buy the Vanguard S&P 500 ETF from these brokers

Compare brokers by available asset types, minimum deposit, stock trade fee and more. Select Go to site to sign up for an account or select More Info to read our comprehensive review.

1 - 11 of 11
Product Finder Score Available asset types Stock trade fee Minimum deposit Cash sweep APY Offer
SoFi Wealth Management logo
Finder score
Stocks, Options, Mutual funds, ETFs, Alternatives
$0
$0
0.01%
Get up to $1,000 in stock when you open and fund a new account. T&C apply.
Trade stocks, ETFs, and options with zero commissions, invest in IPOs or automate your portfolio, with exclusive perks available through SoFi Plus.
OPTO logo
Finder score
Stocks, ETFs
$0
$0
4%
Earn up to $300 when you deposit between $2,000–$25,000+.
Copy top-performing portfolios or build your own stock index on Opto's AI-driven thematic investing platform, and get 4% APY on your cash.
Interactive Brokers logo
Finder score
Stocks, Bonds, Options, Mutual funds, ETFs, Cryptocurrency, Futures, Forex, Treasury Bills
$0
$0
3.83% Lite
4.83% Pro
Trade a wide range of assets, with global market access and pro-grade trading tools.
Zacks Trade logo
Finder score
Stocks, Bonds, Options, Mutual funds, ETFs, CDs
$0.01
$250
2.83%
Get up to $1,000 when you open and fund an account. Terms apply.
Leverage powerful trading tools and low margin rates to trade stocks, options, ETFs, mutual funds and bonds.
Robinhood logo
Finder score
Stocks, Options, ETFs, Cryptocurrency, Futures
$0
$0
4%
Get a free stock when you successfully sign up and link your bank account.
Trade stocks, options, crypto and more, with advanced trading tools, fractional shares and exclusive perks for Gold members.
Public logo
Finder score
Stocks, Bonds, Options, ETFs, Cryptocurrency, Alternatives, Retirement, Treasury Bills, High-yield cash account
$0
$0
4.1%
Get up to $10,000 and transfer fees covered when you move your portfolio to Public.
Build a diversified portfolio of stocks, bonds, options, ETFs and crypto, with a high-yield cash account and options contract rebates.
Acorns logo
Finder score
Stocks, ETFs
$0
$0
N/A
Get a $20 bonus when you set up an account and make your first recurring investment (min. $5).
Automate investing with recurring contributions starting at $5 and invest spare change from everyday purchases.
Stash Investments LLC logo
Finder score
Stocks, ETFs
$0
$0
0.1%
Get $10 when you sign up and deposit $5.
Bank, automate your portfolio or invest in individual stocks and ETFs for as low as $3 per month.
Wealthfront logo
Finder score
Stocks, ETFs
$0
$500
4.00%
Get a $50 bonus when you sign up and fund a taxable automated investing account with at least $500.
Automate your stock and bond portfolio or trade individual stocks for as little as $1 apiece. Plus, earn 4% APY on your cash.
JPMorgan logo
Finder score
Mutual funds, ETFs
$0
$25,000
N/A
Get ongoing access to an advisory team with personalized financial planning and expert-built portfolios. Provider terms & conditions apply
M1 Finance logo
Finder score
Stocks, ETFs, Cryptocurrency
$0
$100
4.00%
Build a custom portfolio of stocks and ETFs with automatic rebalancing. Plus, earn 4.00% APY with a high-yield cash account.
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What is the Finder Score?

The Finder Score crunches 147 key metrics we collected directly from 18+ brokers and assessed each provider’s performance based on nine different categories, weighing each metric based on the expertise and insights of Finder’s investment experts. We then scored and ranked each provider to determine the best brokerage accounts.

We update our best picks as products change, disappear or emerge in the market. We also regularly review and revise our selections to ensure our best provider lists reflect the most competitive available.

Read the full Finder Score breakdown

Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.

Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.

Frequently asked questions

How can I buy Vanguard S&P 500 ETF?

Buy the Vanguard S&P 500 ETF through a brokerage account or IRA. Log in to your brokerage account, search by ticker symbol VOO, decide how much to invest and buy your shares.

Can I buy ETFs directly from Vanguard?

You can buy ETFs directly from Vanguard if you have a Vanguard brokerage account.

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Written by

Investments editor

Matt Miczulski is an investments editor at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions. Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University. See full bio

Matt's expertise
Matt has written 190 Finder guides across topics including:
  • Trading and investing
  • Broker and trading platform reviews
  • Money management

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