Vanguard’s S&P 500 ETF (VOO) gained approximately 8% in 2026, tracking the broader market’s recovery from an earlier correction as passive investing continues to dominate investor flows.
The ETF’s year-to-date performance reflects the S&P 500’s resilience following a 10% drawdown in early 2026. According to Slickcharts, VOO posted an 8.11% gain for the year, while Yahoo Finance reported an 8.73% year-to-date return as of early June, with the figure later updated to 8.46%.
VOO’s growth extends beyond price appreciation. On June 2, 2026, the fund reached a historic milestone by becoming the first exchange-traded fund to surpass $1 trillion in net asset value, according to Morningstar. The achievement underscores the immense success of index funds and Vanguard’s role in their adoption by investors of all types.
Inflows of new money have been the primary driver of VOO’s expansion. Between June 2021 and May 2026, investors added more than $400 billion of new money to the fund, according to Morningstar’s analysis. In 2026 alone through early June, VOO drew approximately $69 billion in net inflows, well ahead of its competitors—the iShares Core S&P 500 ETF received an estimated $36 billion during the same period.
The recovery in 2026 followed a volatile start to the year. The S&P 500 dropped more than 10% from its peak in early 2026, officially entering correction territory, according to Raseed Invest. However, the index staged a dramatic recovery; J.P. Morgan noted that after the nearly 10% drawdown, a full recovery to preconflict levels took only 11 trading sessions.
VOO’s success reflects a broader shift toward passive investing. Bloomberg reported in April 2026 that passive investing flows were propelling the market, with steady inflows acting as an accelerant in rallies. This trend has been consistent throughout 2026, with index funds continuing to attract investor capital at the expense of actively managed strategies.
The fund’s low expense ratio of 0.03% has been central to its competitive advantage, according to Barron’s analysis. This ultra-low fee structure helped VOO overtake State Street’s SPDR S&P 500 ETF (SPY), which had been the larger fund just five years earlier. As of June 2, 2026, VOO’s net asset value stood at $1 trillion, while IVV had just under $861 billion and SPY had almost $786 billion.
Sources
- Morningstar — VOO’s $1 trillion milestone on June 2, 2026, and $400 billion inflows from June 2021 to May 2026
- Slickcharts — VOO’s 8.11% gain in 2026
- Yahoo Finance — Year-to-date return of 8.46-8.73% as of early June 2026
- InvestmentNews — $69 billion in VOO inflows through early June 2026
- Raseed Invest — S&P 500 correction of 10% in early 2026
- J.P. Morgan — Recovery to preconflict levels in 11 trading sessions
- Bloomberg — Passive investing flows propelling the market in April 2026
- Barron’s — VOO’s 0.03% expense ratio and competitive advantages
