This “Diversified” Vanguard ETF Is at Its Most Concentrated Point Since 1965. Here's What That Means for VOO Investors.

Many investors view the Vanguard 500 ETF (NYSEMKT:VOO), which tracks the S&P 500 Index, as a diversified investment because it holds shares of 500 of the largest publicly traded companies. However, it's not as diversified as it seems. Its top 10 holdings comprise almost 40% of its total value. That's its highest concentration since 1965 and well above the dot-com peak of 26%.

Here's what this heavy concentration means for investors in the Vanguard S&P 500 ETF.

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