The S&P (VOO) Is Ripping, And These Are The Top Stocks

The Vanguard S&P 500 ETF (NYSEARCA:VOO) is one of the most popular exchange-traded funds, offering investors broad exposure to the 500 largest U.S. companies. Tracking the S&P 500 Index, VOO is a low-cost, market-cap-weighted fund that reflects the performance of America’s economic heavyweights. With an expense ratio of just 0.03%, it’s a favorite for long-term investors seeking diversified growth. 

In 2025, VOO has surged, driven by an historic rally in the S&P 500, which recently hit an intraday high of 6,508. This ascent is fueled by a concentrated group of technology giants that dominate the index due to their massive market capitalizations. The top three stocks —  representing nearly 21% of VOO’s portfolio — have been pivotal in pushing the ETF to new heights. 

However, their outsized influence also raises questions about concentration risk in an otherwise diversified fund. Let’s take a closer look at how these top holdings are shaping VOO’s remarkable performance that has caused it to rip higher.

NVIDIA (NVDA)

Nvidia (NASDAQ:NVDA | NVDA Price Prediction), with an 8.07% weighting in VOO, has emerged as the S&P 500’s most influential stock in 2025. Its 30% gain this year — and the meteoric 911% gain over the last three — has been driven by insatiable demand for its GPUs in artificial intelligence and data centers, helping to significantly boost VOO’s returns. 

As the largest holding, Nvidia’s performance has a disproportionate impact on the ETF, contributing roughly a third of the S&P 500’s gains since January. The company’s dominance in AI chip technology, coupled with strong earnings that were driven by a 56% year-over-year revenue increase in the second quarter, has fueled investor enthusiasm. 

However, Nvidia’s high valuation, trading at a price-to-earnings ratio of 50, raises concerns about sustainability. If AI hype cools or competition intensifies, a pullback could drag VOO lower. For now, Nvidia remains the primary engine behind VOO’s rally, but its volatility underscores the ETF’s reliance on a single stock’s momentum.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) holds a 7.38% weighting in VOO, making it the second-largest contributor to the ETF’s performance. Its stock has risen steadily, up about 20% in 2025, driven by its leadership in cloud computing and artificial intelligence. 

Azure, Microsoft’s cloud platform, continues to capture market share, growing 30% year-over-year in the latest quarter, while AI integrations across its software suite enhance its growth prospects. 

Microsoft’s diversified revenue streams — from Windows to Office to gaming — provide stability that balances VOO’s exposure to more volatile tech names like Nvidia. Its consistent earnings growth — up 22% in its fiscal fourth quarter — has bolstered investor confidence, making it a reliable driver of VOO’s upward trajectory. 

However, Microsoft’s high weighting means any regulatory scrutiny, particularly around AI or antitrust concerns, could ripple through the ETF. For now, Microsoft’s steady gains are a cornerstone of VOO’s strong 2025 performance.

Apple (AAPL)

The last of the Big Three is Apple (NASDAQ:AAPL), with a 5.77% weighting and a critical driver of its performance. Down 7% in 2025, Apple has surged 37% off its April lows on the strength of robust iPhone sales, expanding services like Apple Music and iCloud, and its recent commitment to artificial intelligence. 

The company’s fiscal Q3 earnings showed a 10% revenue increase, driven by a record-breaking services segment that now accounts for 29% of total revenue. Apple’s brand loyalty and ecosystem strength ensure steady cash flows, making it a stabilizing force in VOO’s portfolio. 

However, its reliance on hardware sales, particularly in a competitive smartphone market, poses risks, especially with potential supply chain disruptions in Asia. 

Apple’s performance has helped VOO weather market fluctuations, but its spottier growth record compared to Nvidia and Microsoft highlights its role as a steady, rather than explosive, contributor to the ETF’s gains.

Key Takeaways

Together, Nvidia, Microsoft, and Apple account for over 20% of VOO’s portfolio, illustrating the ETF’s heavy reliance on technology. Nvidia’s AI-driven surge has been the primary catalyst for VOO’s 2025 rally, while Microsoft’s diversified growth and Apple’s long-term stability provide a balanced foundation. 

However, this concentration raises concerns: a tech sector downturn could significantly impact VOO, despite its 500-stock diversification. Investors benefit from these companies’ innovation but must remain mindful of risks like market saturation, regulatory pressures, or economic shifts. 

For now, VOO’s performance reflects the strength of these tech giants, making it a compelling choice for those betting on their continued dominance. As the S&P 500 continues its climb, Nvidia, Microsoft, and Apple will likely remain the key forces propelling VOO forward, shaping its trajectory in an increasingly tech-driven market.