Why I Might Never Purchase Vanguard’s S&P 500 VOO Again

by | May 22, 2024 | Vanguard IRA | 3 comments




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Why I May NEVER Buy Vanguard S&P 500 VOO Again

As an investor, I have always believed in the power of diversification and the importance of building a well-rounded portfolio. For years, I have relied on the Vanguard S&P 500 ETF (VOO) as a core holding in my investment strategy. However, recent events have forced me to reevaluate my decision and question whether I should continue to invest in VOO.

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One of the main reasons why I may never buy VOO again is the lack of sector diversification. The S&P 500 is comprised of the largest companies in the United States, but it is heavily weighted towards technology and other high-growth sectors. While these companies have provided strong returns in recent years, they also come with a higher level of risk. By investing solely in VOO, I am essentially putting all my eggs in one basket and missing out on potential returns from other sectors that may outperform in the future.

Another factor that has made me reconsider my investment in VOO is the lack of exposure to international markets. While many of the companies in the S&P 500 have global operations, VOO is heavily focused on domestic companies. This leaves my portfolio vulnerable to economic events that may only impact the US market and not diversify my exposure to international markets.

Furthermore, the rise of passive investing has led to an overvaluation of certain stocks in the S&P 500. With more investors pouring money into index funds like VOO, the prices of these stocks have been driven up to unsustainable levels. This has created a potential bubble in the market that could burst at any time, leading to significant losses for investors who are heavily invested in VOO.

Lastly, the recent performance of VOO has been lackluster compared to other index funds and actively managed funds. While past performance is not indicative of future results, it is concerning that VOO has underperformed its peers in recent years. This has made me question the effectiveness of VOO as a core holding in my portfolio and whether there are better investment options available.

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In conclusion, while VOO has served me well in the past, recent events have caused me to rethink my investment in this ETF. The lack of sector diversification, international exposure, overvaluation of certain stocks, and underperformance compared to other funds have all contributed to my decision to potentially never buy VOO again. As investors, it is important to constantly reassess our holdings and make adjustments to our investment strategies in order to achieve our financial goals.

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3 Comments

  1. @RichardFain

    ► Limited Time – 5.1% APY + 3% APY Booster + Up to 15 Free Stocks! (Deposit $100 Get 5 Free Stocks – Deposit $1,000 Get Additional 10 Free Stocks): https://j.moomoo.com/00EI6e

  2. @plugcreativetv

    How exactly does one invest in the s&p 500, do I just buy the stock on Robinhood? Need help

  3. @mbank3832

    Price per share is irrelevant… what matters is the dollar exploded to the fund

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