Vanguard S&P 500 ETF (VOO)
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Tracks the S&P 500 index with a 0.03% expense ratio. One of the most-held ETFs in the world. Pays quarterly dividends.
★ Best PickA+Best Overall
VOO tracks the S&P 500 at a 0.03% expense ratio — the lowest cost access to 500 of the largest U.S. companies available. Vanguard's unique fund structure provides a structural tax advantage in taxable accounts by eliminating capital gains distributions that standalone ETFs cannot shed. Over the 10 years ending 2025, VOO returned approximately 13.1% annualized, tracking its index within 0.01%.
Pros
- 0.03% expense ratio — among the lowest in the ETF universe
- Tax-efficient structure eliminates capital gains distributions in taxable accounts
- Tracks S&P 500 within 0.01% of the index over 10 years
Cons
- Quarterly dividend payments vs monthly for some competitors
- Heavy U.S. concentration — no international exposure
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