The Vanguard S&P 500 ETF (VOO), which tracks the S&P 500 Index (SPX), rose 2.63% in today’s pre-market trading after President Donald Trump announced a two-week ceasefire with Iran, tied to the reopening of the Strait of Hormuz and an end to hostile attacks.
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Oil prices sank in reaction to the favorable developments in the Middle East. At the time of writing, the international oil benchmark Brent (CM:BZ) was down 16.2% at $91.75 per barrel, while West Texas Intermediate (WTI) crude (CM:CL) plunged 17.9% to $92.71 per barrel.
During Tuesday’s regular trading, the three major indexes closed mixed in anticipation of the Hormuz deadline. The S&P 500 and Nasdaq each gained 0.1%, while the Dow dipped 0.18%. Trump escalated pressure on Iran ahead of his deadline to reopen the Strait of Hormuz, while Pakistan’s Prime Minister Shehbaz Sharif urged a ceasefire.
Overall, VOO has gained 3.23% over the past five days and 33% over the past year.
VOO’s Key Holdings with Highest Upside/Downside Potential
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, VOO is a Moderate Buy. The Street’s average price target of $762.95 implies an upside of 25.89%.
Currently, VOO’s five holdings with the highest upside potential are:
Meanwhile, its five holdings with the greatest downside potential are:
Revealingly, the VOO ETF’s Smart Score is seven, implying that this ETF will likely perform in line with the market.
Does VOO Pay Dividends?
Yes, VOO pays dividends. These payments come from the dividends paid by the companies in the S&P 500, and VOO distributes them to shareholders every quarter. The payout amount can change from quarter to quarter because company dividends vary. Investors can receive the dividend as cash or choose to automatically reinvest it into more shares through a dividend reinvestment program.