The Vanguard VOO S&P 500 ETF is often celebrated for its broad diversification across the 500 largest US companies. But did you know it currently holds 504 stocks? And more importantly, around 33% of the fund is concentrated in just 10 stocks. This means, while the fund offers a lot of exposure, it’s actually a bit more top-heavy than you might expect.
The ten stocks that dominate the fund are industry giants, like NVIDIA (NVDA), Microsoft (MSFT), and Apple (AAPL). Here’s how the top 10 stocks break down by their weighting in the ETF:
NVIDIA (NVDA): 6.76%
Microsoft (MSFT): 6.26%
Amazon (AMZN): 3.61%
Meta (META): 2.57%
Alphabet Class A (GOOGL): 2.08%
Alphabet Class C (GOOG): 1.72%
Berkshire Hathaway Class B (BRK.B): 1.71%
Broadcom (AVGO): 1.64%
Tesla (TSLA): 1.44%
Apple (AAPL): 7.11%
So, although VOO offers exposure to the broader US market, it’s heavily tilted towards these tech-heavy stocks. For every £100 you invest in the Vanguard S&P 500 ETF, here’s how it breaks down across the top 10 holdings:
NVIDIA (NVDA): £6.76
Microsoft (MSFT): £6.26
Amazon (AMZN): £3.61
Meta (META): £2.57
Alphabet (GOOGL): £2.08
Alphabet (GOOG): £1.72
Berkshire Hathaway (BRK.B): £1.71
Broadcom (AVGO): £1.64
Tesla (TSLA): £1.44
Apple (AAPL): £7.11
This means over £33 of every £100 you invest in the Vanguard VOO is tied up in just 10 companies. While it may still seem diversified, it’s worth remembering that these stocks play a huge role in driving the performance of the fund.
So, while VOO offers broad exposure, its weightings show just how much of the ETF’s success (or failure) can be tied to these tech giants. It’s a good reminder that even an ETF with 500+ stocks can still have some concentrated risks.
Disclaimer
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