Vanguard S&P 500 ETF Beats 90% of Fund Managers Over 15 Years
Updated
Updated · The Motley Fool · May 30
Vanguard S&P 500 ETF Beats 90% of Fund Managers Over 15 Years
4 articles · Updated · The Motley Fool · May 30
More than 90% of actively managed U.S. large-cap funds lagged the market over 15 years, reinforcing the case for Vanguard's S&P 500 ETF as a low-cost alternative.
VOO charges a 0.03% expense ratio, versus roughly 1% or more for many active mutual funds, a fee gap that steadily erodes long-term returns.
The fund has grown to $974 billion in assets, returned 31.2% over one year and 14% annualized over five years, while giving investors broad large-cap U.S. exposure.
Tech now makes up 35% of the portfolio, with Nvidia, Apple, Alphabet and Microsoft among the biggest holdings, tying the ETF closely to the AI-driven growth trade.
If most active funds fail, why are new actively managed ETFs dominating the investment industry's growth?
Is the S&P 500's tech concentration turning passive investing into a high-risk bet on the AI boom's future?
Beyond US large-caps, where can active managers still reliably beat benchmarks and deliver real value to investors?