The Vanguard S&P 500 ETF (VOO), which tracks the S&P 500 Index (SPX), was down 0.52% in pre-market trading on Tuesday as news of OpenAI missing revenue and user targets weighed on the tech sector. The report noted that OpenAI CFO Sarah Friar expressed concerns that the startup may struggle to pay for its massive computing contracts if revenue growth doesn’t accelerate. As a result, several AI-related stocks moved lower in Tuesday’s trading, including Oracle (ORCL), Advanced Micro Devices (AMD), Broadcom (AVGO), and Nvidia (NVDA).
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Trade MPWR with leverageSimultaneously, a jump in oil prices fueled by Middle East tensions added further pressure, raising concerns about persistent inflation. At the time of writing, Brent crude (CM:BZ) was up by 2.54% to $106.84 per barrel, while WTI crude (CM:CL) gained 2.59% to $111.17.
In Monday’s regular trading session, the S&P 500 and Nasdaq set new intraday and closing records to kick off a busy week, with the indices up 0.12% and 0.20%, respectively, while the Dow slipped 0.13%.
Overall, VOO has gained 0.69% over the past five days and 30% 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 $767.95 implies an upside of 16.80%.
Currently, VOO’s five holdings with the highest upside potential are:
Meanwhile, its five holdings with the greatest downside potential are:
- Moderna (MRNA)
- Ciena Corp. (CIEN)
- ON Semiconductor (ON)
- Advanced Micro Devices (AMD)
- Monolithic Power (MPWR)
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.