Vanguard Total World Stock ETF holds SpaceX and chipmakers missing from VOO
The Vanguard Total World Stock ETF (VT) holds shares of Space Exploration Technologies (SpaceX), a company excluded from the Vanguard S&P 500 ETF (VOO) due to S&P Dow Jones Indices rules. On June 4, S&P Dow Jones Indices rejected a proposal to fast-track the inclusion of megacap companies in the S&P 500. This decision requires companies to be traded on an eligible exchange, such as Nasdaq or the New York Stock Exchange, for at least 12 months before consideration. Consequently, the earliest SpaceX can be added to the S&P 500 is June 2027. The Vanguard Total World Stock ETF is not benchmarked to the S&P 500 and began buying SpaceX in June. As of Aug. 31, the ETF held 453,258 shares of SpaceX, making it the 261st largest holding in the fund. SpaceX's unlocking schedule indicates that the ETF will likely add to these holdings as more shares become available for trading on Nasdaq.
The Vanguard Total World Stock ETF (VT) holds shares of Space Exploration Technologies (SpaceX), a company excluded from the Vanguard S&P 500 ETF (VOO) due to S&P Dow Jones Indices rules. On June 4, S&P Dow Jones Indices rejected a proposal to fast-track the inclusion of megacap companies in the S&P 500. This decision requires companies to be traded on an eligible exchange, such as Nasdaq or the New York Stock Exchange, for at least 12 months before consideration. Consequently, the earliest SpaceX can be added to the S&P 500 is June 2027. The Vanguard Total World Stock ETF is not benchmarked to the S&P 500 and began buying SpaceX in June. As of Aug. 31, the ETF held 453,258 shares of SpaceX, making it the 261st largest holding in the fund. SpaceX's unlocking schedule indicates that the ETF will likely add to these holdings as more shares become available for trading on Nasdaq.
The Vanguard Total World Stock ETF holds more than 10,000 stocks, with 65.1% of its assets in North American companies. The fund provides exposure to non-U.S. technology stocks that are significant in the artificial intelligence value chain but absent from the S&P 500. Taiwan Semiconductor Manufacturing (TSM) is the fund's sixth-largest holding, with a market cap of $2.35 trillion at the time of writing. Samsung Electronics (SSNLF) ranks 13th and SK Hynix (SKHY) ranks 16th, both with market caps exceeding $1.2 trillion. ASML (ASML) is the 18th largest holding, with a market cap of $686 billion.
These four companies play critical roles in chip manufacturing and memory chip design. Taiwan Semiconductor operates as a pure-play foundry producing chips for clients like Nvidia, Advanced Micro Devices, Broadcom, Apple, and Qualcomm. In contrast, Samsung Electronics and SK Hynix both design and fabricate their own semiconductors, maintaining a leading position in memory chips alongside U.S.-based Micron Technology. ASML, a Dutch firm, supplies lithography equipment used to etch complex patterns onto microchips, a process relied upon by Taiwan Semiconductor, Samsung Electronics, SK Hynix, and Intel for next-generation AI logic and memory production.
The Vanguard S&P 500 ETF is the largest exchange-traded fund in the world, having surpassed $1 trillion in net assets earlier this year. It carries an expense ratio of 0.03%, equivalent to $3 for every $10,000 invested. The Vanguard Total World Stock ETF has an expense ratio of 0.06%, or $6 for every $10,000 invested. The S&P 500 index has historically produced annualized total returns of 9% to 10%. Warren Buffett has previously allocated Berkshire Hathaway capital to the Vanguard S&P 500 ETF.
The Vanguard S&P 500 ETF concentrates 30% of its weighting in five stocks: Nvidia, Apple, Alphabet, Microsoft, and Amazon. The Vanguard Total World Stock ETF holds the same five largest positions but with lower individual weightings. Its top 20 holdings account for just 28.4% of the fund's assets, a group that includes Taiwan Semiconductor, Samsung Electronics, SK Hynix, and ASML. This structure offers less concentration than the S&P 500 ETF while including a blend of industry-leading non-U.S. stocks.