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REDDIT

VOO does it compound annually or not at all? Set and forget?

K
May 6, 2025 · 15:39

I currently have around 135k in VOO. This is after the market dip recently.

Currently I'm contributing $1,000 a month into VOO. I did some basic research and found that I can't calculate my returns using compound interest (5% annually) as a base, since VOO doesn't technically compound.

Is this correct?

If so, contributing 12k a year into VOO, how would I calculate my return? Just use the 5% return rate and multiply it up annually?

Lastly, would you guys still recommend going mostly into VOO for the next 15 plus years?

Thanks everyone.