Seeking Alpha

Vanguard takes aim at SPY and IVV with reverse split of VOO

  • Moving to better compete with the S&P 500 ETF giants - State Street's (STT) SPDR S&P 500 ETF Trust (SPY) and iShares' (BLK) S&P 500 Index (IVV) - Vanguard sets a 1:2 reverse split of its S&P 500 ETF (VOO), effective October 24.
  • This will double VOO's price ($77.36 currently) to something more in line with the price of SPY and IVV; effectively lowering the all-in cost for investors without costing Vanguard anything (a bid-ask spread of $0.01 on a $150 stock is less on a percentage basis than on a $75 stock).
  • The SPY currently has about $144B in AUM, and IVV about $45B. Vanguard's VOO has about $11B.
  • Source: Press release.
  • Other S&P 500 ETFs: RWL, SFLA, SSO, UPRO, SDS, SPXU, SH, EPS, RSP, BXUB, BXUC, BXDB.
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