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The Vanguard S&P 500 ETF (VOO) has staged a strong comeback this year and is nearing its all-time high of $561. It has moved into a bull market after soaring by 25% from its lowest point in April. It is hovering at its highest swing since February 21st.
VOO ETF inflows are surging
The Vanguard S&P 500 Index ETF has become one of the fastest-growing funds in Wall Street in terms of inflows. It has had over $66 billion in inflows this year alone, bringing its total assets to $608 billion.
Most importantly, VOO has already overtaken the SPDR S&P 500 ETF in terms of assets. SPY, which has long dominated the S&P 500 Index space, has $606 billion assets as it shed over $28 billion.
The main reason for this divergence is that VOO is much cheaper than the SPY. VOO has an expense ratio of 0.03%, while the SPY charges 0.09%. These numbers mean that a $10,000 investment in the two will cost $3 and $9, respectively.
While these are small numbers, analysts recommend the cheaper VOO or IVV since they all invest in a similar index.
(Click on image to enlarge)
VOO ETF inflows | Source: ETF
Analysts are bullish on the S&P 500 Index
The VOO ETF stock has jumped as analysts express a bullish outlook for US equities. Tom Lee, the founder of FundStrat, and one of the most popular analysts, said that the S&P 500 bull run started on April 7 when US equities plunged following the Liberation Day speech.
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