Vanguard S&P 500 ETF (VOO)

The Dow Jones dropped below 24000 (intra-day) on 3 May 18. I have been waiting for this level for a few weeks while trying to settle my trading account issue at Charles Schwab.

With the issue settled, I bought some VOO which is a ETF reflecting S&P performance at a unit price of US$240.09. This purchase follows Mr Warren Buffett advice on S&P and my personal experience with Vanguard mutual funds (VBINX). Unfortunately, as a foreigner, Vanguard or the FED has prevented me to purchase mutual funds outside of US. Previously I could purchase mutual funds. I have purchased VBINX more than 10 years ago (in 2007) even before the financial crisis in 2008/2009. The dividend from VBINX was reinvested throughout the years and this mutual fund has been one of the best performed fund over a long period of time. Back in 2007, the Dow Jones was just 13500.

With this in mind, I bought VOO with the intention to hold it for long term, as what Mr Buffett has advised, with dividends reinvested.

The other thing that surprised me was the commission that Charles Schwab earns is just US$4.95. Back in 2007, it was US$14.95. Competition has eroded trading firms commission. Of course, there could even be cheaper commission rate, but I am happy with the support service that Charles Schwab customer service provides.

VOO has an expense ratio of just 0.04%, one of the lowest in its category. This is fantastic for long term investor. The ETF has another advantage in that its price moves with the market and unlike mutual fund where the index is given only at the end of the trading day.