Vanguard S&P 500 ETF becomes first to top $1 trillion in assets

The Vanguard S&P 500 ETF, known by its ticker VOO, has achieved a historic milestone, becoming the first exchange-traded fund (ETF) in history to manage assets exceeding $1 trillion.

The investment firm Vanguard confirmed the achievement on Wednesday, noting that the fund reached this landmark on Tuesday. This latest record in the rapid growth of ETFs occurred less than 18 months after VOO surpassed State Street Investment Management's SPDR S&P 500 ETF (SPY) in terms of assets.

Investors are increasingly drawn to VOO, seeking broad market exposure at a minimal cost. The fund boasts a management fee of just 0.03%. This is significantly lower than the 0.09% fee charged by the State Street fund, which now ranks third in the competition. BlackRock Inc., the world's largest asset manager, holds the second-largest ETF tracking the S&P 500 index with its iShares Core S&P 500 ETF, which currently has $860 billion in assets and also charges a 0.03% fee.

SPY, the pioneering ETF that launched the market in 1993, now holds $785 billion in assets. Todd Rosenbluth, head of research at VettaFi, described the $1 trillion mark as a "key milestone," emphasizing that "investors continue to turn to low-cost broad market exposure to gain access to the S&P 500 using VOO."

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This is a key milestone. Investors continue to turn to low-cost broad market exposure to gain access to the S&P 500 using VOO.