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These 10 stocks make up 33% of the S&P 500 šŸ“Š

The Vanguard VOO S&P 500 ETF is often celebrated for its broad diversification across the 500 largest US companies. But did you know it currently holds 504 stocks? And more importantly, around 33% of the fund is concentrated in just 10 stocks. This means, while the fund offers a lot of exposure, itā€™s actually a bit more top-heavy than you might expect.


The ten stocks that dominate the fund are industry giants, like NVIDIA (NVDA), Microsoft (MSFT), and Apple (AAPL). Hereā€™s how the top 10 stocks break down by their weighting in the ETF:


  • NVIDIA (NVDA): 6.76%

  • Microsoft (MSFT): 6.26%

  • Amazon (AMZN): 3.61%

  • Meta (META): 2.57%

  • Alphabet Class A (GOOGL): 2.08%

  • Alphabet Class C (GOOG): 1.72%

  • Berkshire Hathaway Class B (BRK.B): 1.71%

  • Broadcom (AVGO): 1.64%

  • Tesla (TSLA): 1.44%

  • Apple (AAPL): 7.11%


So, although VOO offers exposure to the broader US market, itā€™s heavily tilted towards these tech-heavy stocks. For every Ā£100 you invest in the Vanguard S&P 500 ETF, hereā€™s how it breaks down across the top 10 holdings:


  • NVIDIA (NVDA): Ā£6.76

  • Microsoft (MSFT): Ā£6.26

  • Amazon (AMZN): Ā£3.61

  • Meta (META): Ā£2.57

  • Alphabet (GOOGL): Ā£2.08

  • Alphabet (GOOG): Ā£1.72

  • Berkshire Hathaway (BRK.B): Ā£1.71

  • Broadcom (AVGO): Ā£1.64

  • Tesla (TSLA): Ā£1.44

  • Apple (AAPL): Ā£7.11


This means over Ā£33 of every Ā£100 you invest in the Vanguard VOO is tied up in just 10 companies. While it may still seem diversified, itā€™s worth remembering that these stocks play a huge role in driving the performance of the fund.


So, while VOO offers broad exposure, its weightings show just how much of the ETFā€™s success (or failure) can be tied to these tech giants. Itā€™s a good reminder that even an ETF with 500+ stocks can still have some concentrated risks.



Disclaimer

Not financial or tax advice. No content produced by Pluto is financial, accounting, legal or tax advice. Our content is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This article is not tax advice. Talk to your accountant. Do your own research. The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.


For more investing education and to learn to invest, download the Pluto app for free and get started today.Ā šŸ”­



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