If I Could Invest $1,000 in Just 1 ETF in August, I’d Pick This Clear Standout Over the Vanguard S&P 500 ETF (VOO) Earlier this year, the Vanguard S&P 500 ETF became the first exchange-traded fund (ETF) to surpass $1 trillion in assets.
The ETF has grown in size thanks to its simplicity
It tracks the S&P 500 index and charges a mere 0.03% expense ratio, or $0.30 per $1,000 invested. Many brokerages allow users to invest in fractional shares of the ETF. With low fees and the ability to invest a customized dollar amount in the ETF rather than full-share increments, the Vanguard S&P 500 ETF has become a popular choice for getting diversified exposure to the U.S. stock market.
However, if given $1,000 to invest in any ETF in August, I’d choose the Vanguard Communication Services ETF (NYSEMKT: VOX) with its slightly higher 0.09% expense ratio, instead of the Vanguard S&P 500 ETF. Here’s why. Customizing ETF holdings with investment objectives The Vanguard S&P 500 ETF hit a new all-time closing high on Aug. 7, finishing the session at $710.71 per share.