VOO Doesn't Hold SpaceX, Taiwan Semiconductor, Samsung Electronics, SK Hynix, or ASML. Meet the Vanguard ETF That Does.
Some of the world's most important artificial intelligence (AI) stocks are noticeably absent from the S&P 500.
Overview
The Vanguard S&P 500 ETF (NYSEMKT: VOO) is the largest exchange-traded fund (ETF) in the world -- having surpassed $1 trillion in net assets earlier this year. With just a 0.03% expense ratio, or $3 for every $10,000 invested, it provides a low-cost way to invest in the S&P 500 (SNPINDEX: ^GSPC).
An S&P 500 index fund is a simple, hands-off way to own a basket of companies that can perform well over the long term. The strategy has been effective historically -- producing annualized total returns of 9% to 10%. And even Warren Buffett has put some of Berkshire Hathaway's capital to work in the Vanguard S&P 500 ETF in the past.
Details
However, like any index, the S&P 500 has qualities that may not appeal to some investors, such as its focus on U.S. large-cap stocks and its slow pace in adding recently public companies, regardless of their value.
Source
Originally published at www.fool.com.