By Paul La Monica
Vanguard's S&P 500 exchange-traded fund -- so popular it's known simply by its ticker symbol VOO -- just topped $1 trillion in assets, the first ETF to mark that milestone. VOO, which launched in 2010, got there before two rivals with head starts: BlackRock's iShares Core S&P 500 ETF, which began trading in 2000, has $859 billion in assets and the State Street SPDR S&P 500 ETF, the first U.S. ETF to debut in 1993, has $787 billion, according to ETF Database.
So, why has VOO topped other funds that invest in the same stocks? Low fees help. VOO charges an expense ratio of 0.03% versus 0.09% for State Street.; the iShares ETF also charges 0.03%. "Our customers, who tend to be fee-sensitive, gravitate to VOO when they view market dips as longer-term buying opportunities," says Steve Sosnick, Interactive Brokers' chief strategist. Dividends are also key. State Street's fund pays dividends to shareholders quarterly. VOO and iShares automatically reinvest them.
None of this fully explains Vanguard's edge, however. The firm's history -- founded in 1975 by legendary investor John Bogle -- may give it a leg up on BlackRock. "Vanguard has been able to edge out BlackRock...because of their brand and structure," says Eric Balchunas, senior ETF analyst with Bloomberg Intelligence. "They have been known as the low-cost provider for 50 years."
Last Week
Markets: Strikes continued in the Middle East and oil rose. But President Donald Trump was upbeat. Iran threatened to suspend talks unless the U.S. stopped strikes and Israel pulled back from Lebanon. The U.S. said it would impose new tariffs on 60 countries. Stocks set new highs, then fell on Wednesday after chip maker Broadcom guidance disappointed. The House voted to limit Trump's war powers in Iran. The U.S. added a robust 172,000 jobs in May and stocks sold off on Friday. On the week, the Dow industrials fell 0.3%, the S&P 500 2.6%, ending a nine-week winning streak, and the Nasdaq Composite 4.7%.
Companies: Trump signed an executive order asking companies to allow the government to vet artificial-intelligence models before launch. Nvidia and Microsoft are partnering to move into the consumer computer market. Alphabet announced an $85 billion equity offering, its first in 20 years; Berkshire Hathaway agreed to buy $10 billion worth. The Commerce Department allowed Swedish car maker Volvo Car, majority owned by China's Geely Automobile Holdings, to sell in the U.S.
Deals: Berkshire Hathaway agreed to buy home builder Taylor Morrison Home for $6.8 billion in cash...Anthropic confidentially filed for its initial public offering....SpaceX could go public this week at a $1.8 trillion valuation but S&P Global said it would not fast-track it into the S&P 500....Barry Diller's People Inc. offered $18 billion for MGM Resorts.
Next Week
Tuesday 6/9 The National Association of Realtors reports existing-home sales for May. Consensus estimate is for a seasonally adjusted annual rate of 4.06 million homes sold, slightly more than in April.
Wednesday 6/10 Oracle reports earnings on Wednesday, followed by Adobe Thursday. The Bureau of Labor Statistics releases the consumer price index for May. Economists forecast a 4.2% year-over-year jump, four-tenths of a percentage point more than in April. The core CPI is expected to increase 2.9% compared with 2.8% previously. Headline inflation is running at its hottest since May 2023.
Thursday 6/11 SpaceX is expected to price its IPO at $135 a share on Thursday, raising $75 billion, and valuing the company at about $1.8 trillion. Shares of SpaceX would then begin trading on the Nasdaq exchange on Friday.
Friday 6/12 The University of Michigan releases its consumer sentiment survey for June. The consensus call is for a 46 reading, about one point more than May's record-low reading.
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(END) Dow Jones Newswires
June 05, 2026 21:30 ET (01:30 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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