U.S. index funds attracted $123.84 billion in July 2026 as long-term actively managed funds saw $31.06 billion in net outflows, according to ICI data cited by TheStreet. Vanguard’s S&P 500 ETF, VOO, also became the first ETF to surpass $1 trillion in net assets.
SPIVA’s year-end 2025 scorecard found that 79% of U.S. large-cap active equity funds underperformed the S&P 500. Its midyear 2026 scorecard also found that 67% of large-cap, 74% of mid-cap and 69% of small-cap managers trailed their benchmarks, according to S&P Dow Jones Indices.
VOO tracks the S&P 500, holds about 500 U.S. large-cap stocks and charges an annual expense ratio of 0.03%, or $3 per $10,000 invested. Motley Fool analyst Ben Gran said its annualized return over the prior 16 years was about 15%, while noting the S&P 500’s longer-run historical average is closer to 10%.
