Why Investing in VOO for 3 Years

VOO, Vanguard’s S&P 500 ETF, is a low-cost fund tracking the 500 largest U.S. companies.

Known for its high liquidity and strong performance, it’s a staple in my Roth IRA.

Even Warren Buffett recommends a similar strategy for long-term wealth preservation.

I started investing in VOO in December 2022 at $362 per share.

Since then, I’ve been consistently contributing $500 monthly to buy VOO and other dividend ETFs.

As of November 2024, VOO’s price has climbed to $549

—a 50% increase from my initial investment.

Over three years, my total return on VOO is 26.53%, making it a cornerstone of my portfolio.

VOO and SPY both track the S&P 500,

but VOO’s lower expense ratio (0.03%) makes it more cost-effective for long-term investors.

Feature	VOO	SPY
Dividends	Quarterly (~1.38%)	Monthly (~1.33%)
Expense Ratio	0.03%	0.0945%

SPY’s higher liquidity and monthly dividends are appealing for cash flow-focused investors,

but for my goals, VOO’s cost savings win.

VOO’s steady performance aligns with my strategy for building a diversified, long-term portfolio.

Whether you choose VOO or SPY, consistency and discipline are key to success. 😊

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