Vanguard’s S&P 500 ETF (VOO) surpasses $700 billion in assets under management, becoming the largest ETF globally. Clients prefer simple, low-cost, passive strategies, reflecting a shift towards index funds due to difficulty in consistent active management. VOO is up 10% in 2025, with $79 billion in flows, showing continued faith in large-cap US equities.

President Trump’s executive order expands access to alternatives in 401(k)s, catering to mass affluent clients seeking higher yields. However, the hype around increased risk appetite is driven more by the industry than actual investor demand. Money market mutual funds report record assets exceeding $7 trillion, raising questions about the true risk sentiment in the market.

Read more at Yahoo Finance: VOO Becomes First ETF to Top $700 Billion in Assets