What are the differences between VOO and VPU?

VOO is a large-blend index fund tracking the S&P 500, focusing on broad US equity market performance with low costs and high liquidity. VPU is a sector-specific fund targeting utilities, offering exposure to companies providing essential services. While VOO tracks the overall economy's growth, VPU focuses on a defensive sector. The primary distinctions lie in investment scope, risk profile, and income generation potential.

How does tracking an index work for these funds?

VOO and VPU track specific market segments. VOO mirrors the S&P 500, capturing a broad slice of the US large-cap economy, though its exact index name is listed as 'not available' in this dataset. VPU tracks a utilities sector index, focusing on companies in power, water, and gas services. Both use passive management to replicate their respective benchmarks' performance rather than active stock picking.

What does sector concentration mean for these ETFs?

VOO holds a diverse range of large-cap US stocks, including significant weight in mega-cap technology firms. This broad base reduces single-company risk but introduces concentration in growth sectors. VPU concentrates entirely on the utilities sector, offering defensive exposure during economic downturns due to consistent demand for essential services. Investors should consider that VOO provides market-wide diversification, while VPU provides deep exposure to one industry.

How do the expense ratios compare between VOO and VPU?

VOO has an expense ratio of 0.03%, which is lower than VPU's 0.09%. Over time, this 0.06 percentage point difference can impact net returns, especially for long-term compounding. VOO's lower cost structure makes it more cost-effective for holding large amounts of capital. While VPU's fee is still low, it is higher due to the specialised nature of utilities sector tracking compared to broad market replication.

What are the top holdings in each fund?

VOO's top holdings include major technology and growth companies like NVDA, AAPL, and MSFT, with weights ranging from 1.57% to 8.08%. In contrast, VPU's top holdings are utility providers such as NEE, SO, and DUK, with NEE at 11.73%. There is no overlap among the listed top ten holdings of these two funds. This reflects the distinct sectors and investment styles each fund represents.

How do dividend yields differ for VOO and VPU?

VPU offers a higher dividend yield of 2.91%, which is beneficial for income-focused investors. VOO has a modest yield of 1.03%, reflecting the lower payout ratios of many large-cap growth stocks within the S&P 500. ETFs distribute dividends typically on a quarterly basis. Investors should note that yields are variable and based on the underlying companies' profitability and payout policies, not the fund itself.

Which investing goals align with each fund?

VOO is typically associated with long-term growth and broad market exposure. Its low cost and massive asset base make it suitable for core portfolio holdings seeking to mirror the overall US equity market. VPU is often linked to income generation and defensive positioning. Its higher yield and sector focus suit investors looking for stability during market volatility or seeking regular cash flow from essential services.

How do liquidity levels compare between VOO and VPU?

VOO boasts net assets of $1.08 trillion, providing robust liquidity and tight bid-ask spreads due to high trading volumes. VPU has significantly lower net assets of $8.0 billion. While still liquid, VPU's smaller size could affect trading ease in extreme market conditions. VOO's scale ensures that transactions are generally less disruptive to price, making it easier to enter or exit large positions.

Can I hold both VOO and VPU in the same portfolio?

Yes, it is possible to hold both funds in a single portfolio. VOO provides broad market exposure, while VPU adds a tilt towards the utilities sector and higher income. Since there is no overlap in their top ten holdings, they serve different roles. However, adding VPU increases sector concentration risk. Investors should consider how the specific weightings of each fund align with their overall asset allocation strategy.

What data is missing from the comparison?

For both VOO and VPU, the specific index tracked and sector weights are listed as 'not available' in the provided data. While VOO is known to track the S&P 500, the dataset omits the precise index name and detailed sector breakdowns. Investors relying on this comparison should verify sector weights and index details from other sources if these factors are critical to their investment thesis.

VOO vs VPU

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare VOO (S&P 500 Vanguard ETF) and VPU (Utilities Vanguard). This page examines fees, holdings, dividends, and how each fund tracks its market. Both are Vanguard ETFs; expense ratios are 0.03% and 0.09%. Data is current as of Sep 2026. Educational content, not financial advice.

Compare VOO (S&P 500 Vanguard ETF) and VPU (Utilities Vanguard). This page examines fees, holdings, dividends, and how each fund tracks its market. Both are Vanguard ETFs; expense ratios are 0.03% and...

Fund Snapshot

Key Fund Metrics

VOO

Metric

VPU

0.03%

Expense Ratio

0.09%

1.03%

Dividend Yield

2.91%

$1.08T

Net Assets

$8.02B

516

Holdings

75

Sep 7, 2010

Inception Date

Jan 26, 2004

–

Index Tracked

–

Large Blend

Fund Category

Utilities

VOO costs about $6.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

VOO vs VXF

Compare VOO vs VXF on fees, holdings and dividends. VOO is 0.03%, VXF 0.05%. Both yield 1.03%. Shared top-10 holdings are none. Index tracking unavailable.

VOO vs VUG

Compare VOO and VUG. Examine 0.03% expense ratios, dividend yields, top holdings and market segment tracking to understand their structural differences.

VOO vs VXUS

VOO vs VXUS: VOO holds 516 US stocks for 0.03% a year, VXUS holds about 8,860 non-US stocks for 0.05%. Compare fees, yield, size and overlap.

Investment Analysis

VOO

Pros

Low expense ratio of 0.03% minimises ongoing costs for long-term compounding.
Massive $1.08 trillion net assets provide high trading volume, ensuring tight bid-ask spreads and robust liquidity.
Diversification across 500 large-cap US stocks reduces single-stock risk despite heavy tech concentration.

Considerations

,
Modest dividend yield of 1.03% makes it less attractive for income-focused investors.
Top ten holdings represent over 33% of the fund’s value, creating significant concentration in mega-cap growth firms.

VPU

Pros

:
Utilities sector exposure offers defensive characteristics during economic downturns due to consistent demand for essential services.
Higher dividend yield of 2.91% provides more immediate income compared to broad market funds.

Considerations

,
Larger expense ratio of 0.09% incurs higher costs than the broader market alternative.
Significantly lower net assets of $8.0 billion compared to VOO, which may affect liquidity in extreme market conditions.

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About VOO and VPU

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

VPU (VPU)

VPU is Vanguard's Utilities ETF, designed to provide investors with exposure to companies in the utilities sector — principally electricity, gas, water and related services. The fund aims to track a broad utilities index and is typically heavier on established, dividend-paying firms that offer relatively stable cash flows compared with cyclical sectors. Investors often use VPU for income and defensive sector exposure within a diversified portfolio, though it is not immune to market moves. Key sensitivities include interest-rate changes (which can weigh on utility valuations), regulatory developments and commodity or fuel-cost pressures. Costs, yield and tracking error vary over time, and market capitalisation or holdings may change as the index and fund rebalance. This is general educational information and not personal advice; suitability depends on your goals, horizon and risk tolerance. Past performance is not a guide to future returns and capital is at risk.

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