- VOO becomes the first ETF to cross $1T AUM, driven by strong inflows and low-cost investing demand.
- Investors continue shifting from SPY and IVV toward VOO due to its ultra-low expense ratio advantage.
- Since 2022, VOO’s rapid growth has outpaced rivals, reshaping dominance in S&P 500 ETFs.
Vanguard’s VOO has become the first exchange-traded fund to surpass $1 trillion in assets under management, a milestone that underscores the growing dominance of low-cost index investing.
The fund has attracted roughly $69 billion in net inflows so far this year, according to The Kobeissi Letter, putting it on track for one of its strongest years since launching in 2010. The surge in assets has helped VOO pull further ahead of rival S&P 500 funds as investors continue to favor broad market exposure and lower fees.
Since the 2022 market downturn, VOO’s growth has really picked up speed. Their assets more than tripled, letting them outpace their competition. Now, VOO manages more assets than the competing S&P 500 ETFs IVV and SPY, which clock in at around $860 billion and $785 billion, respectively.
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VOO Pulls Ahead of Longtime Rivals
Data cited by The Kobeissi Letter, sourced from Bloomberg and Goldman Sachs, shows VOO steadily gaining ground over several years. While all three major S&P 500 ETFs benefited from strong stock market gains, VOO attracted a larger share of investor money.
After 2022, the trend sped up. VOO extended its lead, hitting the big $1 trillion milestone. In February 2025, it even beat SPY to become the top ETF globally.
VOO tracks the same S&P 500 Index as its rivals. However, investors increasingly favored its lower costs. The fund charges an expense ratio of just 0.03%, while SPY charges 0.09%.
Low Fees Drive Investor Demand
This trend shows how investing is changing. More people are going for low-cost index funds rather than trying to guess which individual stocks will be winners.
VOO’s big growth exemplifies this shift. Part of what makes VOO attractive is Vanguard’s unique setup; they’re owned by the fund investors themselves, letting them really keep expenses down. This cost-cutting strategy continues to draw in long-term investors who just want a straightforward and affordable investment method.
This year especially, VOO outpaced its rivals. According to ETF Tracker, in 2026, VOO raked in $71.5 billion in new money. On the other hand, IVV got around $9 billion, and SPY lagged far behind at $714 million.
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