Overview
- The Vanguard S&P 500 ETF (VOO) tracks the S&P 500, holds 506 large‑cap stocks and charges an ultra‑low 0.03% expense ratio while serving as a common core holding for many portfolios.
- The Schwab U.S. Broad Market ETF (SCHB) offers wider coverage with about 2,350 large, mid and small cap stocks and matches VOO's 0.03% fee but has slightly lagged VOO over the past decade.
- Recent published returns show both funds delivered double‑digit annualized gains over ten years and strong one‑year performance, with VOO and SCHB posting similar but not identical results.
- The Vanguard Growth ETF (VUG) carries the same 0.03% fee but concentrates heavily in growth and technology names, with roughly 70% of its weight in the tech sector.
- Because a handful of mega‑cap tech stocks now drive large shares of index returns, investors are combining a low‑cost core like VOO or SCHB with satellite allocations to international, sector or equal‑weight funds to reduce concentration risk.