The Vanguard S&P 500 ETF (VOO) is an exchange-traded fund (ETF) that, as its name implies, invests in stocks that compose the S&P 500 Index.
The Standard & Poorâ??s 500, commonly known as the S&P 500, is one of the most popular American stock market indices. S&P 500 includes 500 of the largest U.S. companies, based on market capitalization.
These are some of the most well-known and most traded companies in the world. As a result, the S&P 500 has been considered by many analysts to be one of the best representatives of the U.S. stock market and even the overall economy.
VOOâ??s goal is to track this index, which it does with a great degree of precision. Consequently, VOO has enjoyed great popularity among investors who are seeking exposure to large-cap stocks in the U.S. market.