Four companies are 27.1% of Vanguard S&P 500 ETF
Vanguard S&P 500 ETF tries to hold each stock at about the S&P 500's weight, and Vanguard's prospectus says that can leave the fund nondiversified, a state in which a few securities may hurt performance.
Key takeaways
Four companies accounted for 27.1% of net assets in Vanguard S&P 500 ETF, VOO, on Sept. 30, 2026.
Vanguard's fact sheet that day listed NVIDIA at 8.4%, Apple at 7.4%, Microsoft at 5.8% and Alphabet at 5.5%.
The ten largest holdings were 40.6% of net assets.
The ten largest holdings are 40.6% of VOO
Vanguard's prospectus, dated April 28, 2026, says the fund attempts to replicate the S&P 500 by holding each stock in approximately the same proportion as its weight in the index. The Vanguard Group advises the fund, and the prospectus says neither Vanguard nor its affiliates has discretion to pick the index's companies or change its methodology.
The prospectus describes the S&P 500 as including 500 of the top companies in leading industries of the U.S. economy and covering approximately 80% of available market capitalization.
S&P 500 concentration
Vanguard's summary prospectus, dated April 28, 2026, says that by tracking the index the fund could become nondiversified, because of events such as an index rebalance or a market move. In that case, relatively few securities, or even a single security, may hurt the fund's performance, and the shares may fluctuate significantly in value.
The summary prospectus names information technology as a principal risk, because, as of the fund's latest fiscal year end, that sector was a significant portion of the index. The full prospectus puts that year-end at Dec. 31, 2025.
On Sept. 30, 2026, information technology was 39.7% of the stocks in VOO, the same weight as in the S&P 500. Vanguard's ETF profile that day showed every sector weight matching the index.
Tracking the S&P 500
On Vanguard's fact sheet, the average annual return of VOO through Sept. 30, 2026, trailed the S&P 500 by 0.04 percentage points a year over the one-, three-, five- and ten-year periods, and since the ETF shares began on Sept. 7, 2010.
The one-year return was 15.70%, against 15.74% for the index. Over ten years the return was 15.29% a year, against 15.33% for the index.
Vanguard 500 Index Fund
VOO is a class of shares in Vanguard 500 Index Fund. The full prospectus says each share class has the same investment objective, strategies and policies.
The mutual fund's Investor Shares began on Aug. 31, 1976. Vanguard's fund profile as of Sept. 30, 2026, says that class is closed to new investors.
The ETF shares began on Sept. 7, 2010, and individual investors buy and sell them through a broker, not from the fund.
The summary prospectus dated April 28, 2026, puts annual expenses at 0.03%. The full prospectus shows that ratio in each fiscal year from 2021 through 2025.
In Vanguard's example, the cost is $3 for one year on a $10,000 investment, assuming a 5% return each year and unchanged expenses, and not counting brokerage commissions.
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