Vanguard S&P 500 ETF VOO Becomes First To Surpass $1 Trillion In Assets
Vanguard’s S&P 500 ETF, VOO, has become the first exchange-traded fund to surpass $1 trillion in assets under management, a milestone for the ETF industry that highlights the continued growth of passive investing, according to the Financial Times.
The fund crossed the $1 trillion mark on June 3 after quadrupling in size since 2022. Its growth reflects continued investor demand for low-cost index funds and exposure to large-cap U.S. stocks that have benefited from the artificial intelligence boom.
VOO has also surpassed State Street’s SPDR S&P 500 ETF Trust (SPY) as the world’s largest ETF. Strong market performance, substantial inflows, and Vanguard’s low-cost structure have fueled its rise. With an expense ratio of 0.03%, VOO remains one of the cheapest ways to track the S&P 500.
The milestone mirrors the broader expansion of the ETF market. Global ETF assets reached nearly $22 trillion at the end of April, up from about $6.4 trillion at the start of 2020. The industry has also recorded more than six straight years of monthly net inflows.
The shift toward passive investing has accelerated as investors move away from actively managed funds in favor of lower-cost options.
The growth of ETFs could also affect future IPOs. Companies including SpaceX, Anthropic, and OpenAI are reportedly considering or preparing for public listings, and index funds could become major buyers once those stocks qualify for major indexes. Proposed changes by index providers to speed up index inclusion could further accelerate demand.
VOO is part of Vanguard’s structure that combines ETF and mutual fund share classes within the same fund. Together, they hold about $1.6 trillion in assets, making them among the world’s largest investment vehicles. The milestone further strengthens Vanguard’s position as a leader in passive investing and underscores the growing influence of ETFs on global capital markets.
