Vanguard’s S&P 500 ETF has historically beaten nearly all domestic actively managed funds due to lower fees and benchmark tracking.
The Vanguard S&P 500 ETF (VOO) has outperformed 97% of all domestic actively managed funds over the past 20 years, according to historical data. The fund’s low-cost structure and passive indexing approach have driven its success, avoiding the fee drag and underperformance common in active management.
Active funds have struggled to consistently beat benchmarks, with professional money managers often failing to justify higher fees. Retail investors further erode returns through poorly timed trades, making passive strategies like VOO more appealing for long-term growth.
VOO tracks the S&P 500, providing exposure to the U.S. economy’s top companies. Its buy-and-hold strategy leverages compounding, aligning with evidence that passive investing yields better results for most investors.