The Vanguard S&P 500 ETF (VOO) saw a decline of 0.94% on Monday, driven primarily by weakness in key technology stocks. In early pre-market trading today, the ETF is down another 0.50%. Investors are particularly focused on Nvidia’s (NVDA) upcoming third-quarter results, scheduled for release on Wednesday, as these results are anticipated to provide valuable insights into AI demand and the overall outlook for technology stocks.
The VOO ETF closely aligns with the performance of the S&P 500 Index (SPX), which also fell by 0.92% on Monday. Likewise, the tech-heavy Nasdaq 100 (NDX) saw a decrease of 0.83%.
Recent data from TipRanks indicates that VOO has experienced approximately $3 billion in net flows over the past five days, reflecting a consistent demand among investors for exposure to large-cap U.S. equities.
From a price forecast standpoint, VOO is rated as a Moderate Buy according to TipRanks’ ETF analyst consensus, which is based on a weighted average of analyst ratings for its underlying holdings. The average price target for VOO stands at $794.23, suggesting an upside potential of 29.77%.
VOO’s top five holdings with the most significant upside potential include Loews (L), Fiserv, Inc. (FI), Norwegian Cruise Line (NCLH), Oracle (ORCL), and Netflix (NFLX). Conversely, its holdings with the highest downside risk include Albemarle (ALB), Micron (MU), Incyte (INCY), Expeditors International (EXPD), and Paramount Skydance (PSKY). VOO’s Smart Score is rated at seven, indicating a likelihood of performance that aligns with market expectations.
Additionally, VOO provides dividends to its shareholders, delivering a source of regular income through quarterly distributions derived from the dividends paid by the companies within the S&P 500. Currently, VOO’s yield stands at 1.14%.
As investors continue to seek opportunities in the market, careful analysis and attention to upcoming earnings reports may provide further clarity on potential trends in both technology and the broader market landscape.