Apr 29 2024
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The VOO
“An exchange-traded fund is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities such as gold bars.”
— Wikipedia
VOO is the ticker for the Vanguard S&P 500 ETF, one of the most actively traded ETF’s. VOO is rebalanced daily to reflect the respective market capitalisations of all underlying shares that comprise the S&P 500 index. At Celestial we use this ETF as the benchmark for our own strategy as it is one of the most liquid ETF’s with the annual expense ration of 0.04%. The following section provides a fund summary and overview.
“Fund summary
The fund employs an indexing investment approach designed to track the performance of the Standard & Poor’s 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.”
— yahoo finance
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