VOTE ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An ETF that combines investing in the 500 largest US companies with shareholder activism, seeking both social responsibility and market returns at a low cost.
SubscribeWhat is this ETF?
It tracks the Morningstar US Large Cap Select Index and builds a portfolio of approximately 500 leading large-cap stocks that represent the US market. It goes beyond simple investing by pursuing corporate value enhancement through "Active Ownership."
It is well suited for value investors who want to enjoy the growth of the overall US market while ensuring that their capital contributes to improving corporate governance and strengthening social responsibility.
This passive (index-tracking) ETF was launched by TCW in 2021.
How do you invest in it?
| Item | Details |
|---|---|
| Tracking Index | Morningstar US Large Cap Select Index |
| Management Style | Passive (with shareholder activism overlay) |
| Rebalancing Cycle | Once per quarter |
| Dividend Schedule | Quarterly dividend |
| Total Expense Ratio | 0.05% |
It uses a market-cap weighting method to faithfully reflect the performance of the US large-cap stock market. The key differentiating strategy is proxy voting, actively casting votes on agendas that can enhance long-term corporate value, such as addressing climate change, strengthening board independence, and improving human capital management.
- Combination of passive index tracking and active shareholder engagement
- Highly competitive ultra-low-cost structure compared to peer index ETFs
Size and Costs
Assets under management (AUM) stand at $1.1B, and the total expense ratio is 0.05% annually.
It maintains one of the lowest expense ratios in the industry while incorporating the characteristics of an activist fund, allowing investors to pursue cost efficiency and value-oriented investing at the same time.
Performance and Flows
1-Year Price Performance
Dividend & Yield
52-Week Price RangeIt has delivered solid returns, buoyed by the strength of the US large-cap market centered on big tech, and is attracting growing attention as investor interest in corporate governance increases.
Smart money seeking alternatives to traditional ESG funds continues to flow in, and institutional and individual investors who prefer change through engagement rather than outright exclusion are on the rise.
Strengths and Weaknesses
It is a compelling core holding, offering broad exposure to the US market at a low cost and the ability to drive positive change, but excess returns beyond index tracking may be limited.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
FNDX and PRF, shown in the table, are alternatives that focus on fundamental value metrics, whereas VOTE follows the market index directly while concentrating on shareholder rights. Direct comparables include VOO, IVV, and SPY, which share a similar composition with the addition of an activist strategy. For investors looking to broaden exposure to small- and mid-cap stocks, FNDA is also worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 FNDX | Schwab Fundamental U.S. Large Company ETF | $31.99 | +0.4% | $27.4B | 0.25% | 1.48% | +22.5% |
 PRF | Invesco RAFI US 1000 ETF | $55.33 | +0.4% | $9.9B | 0.34% | 1.34% | +23.4% |
 FNDA | Schwab Fundamental U.S. Small Company ETF | $35.53 | +0.3% | $8.7B | 0.25% | 1.24% | +14.9% |
 RECS | Columbia Research Enhanced Core ETF | $45.57 | +0.3% | $6.1B | 0.15% | 0.71% | +14.8% |
 JHMM | John Hancock Multifactor Mid Cap ETF | $72.55 | +0.4% | $5.9B | 0.41% | 0.91% | +13.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 TPG | TPG Inc | - | $44.39 | +1.7% | $17.1B | 67.0 | 5.37% |
| TPG | TPG Inc | - | $44.39 | +1.7% | $17.1B | 67.0 | 5.37% |
| NVDA | NVIDIA Corp | 0.07% | $225.07 | +0.2% | $5.42T | 28.4 | 0.35% |
| NVDA | NVIDIA Corp | 0.07% | $225.07 | +0.2% | $5.42T | 28.4 | 0.35% |
| AAPL | Apple Inc | 0.06% | $341.07 | +1.5% | $4.98T | 39.1 | 0.32% |
| AAPL | Apple Inc | 0.06% | $341.07 | +1.5% | $4.98T | 39.1 | 0.32% |
| MSFT | Microsoft Corp | 0.05% | $516.17 | +3.7% | $3.83T | 28.8 | 0.76% |
| MSFT | Microsoft Corp | 0.05% | $516.17 | +3.7% | $3.83T | 28.8 | 0.76% |
| AMZN | Amazon.com Inc | 0.04% | $249.67 | +0.1% | $2.69T | 20.1 | - |
| AMZN | Amazon.com Inc | 0.04% | $249.67 | +0.1% | $2.69T | 20.1 | - |
Investor Checklist
VOTE is an innovative product that combines the performance of the US large-cap market with a shareholder value enhancement strategy, so before making an investment decision, please review the following key checklist.
| Checkpoint | What to Verify | Current Status |
|---|---|---|
| 🗳️ Shareholder Engagement | Understanding of the manager's proxy voting direction and philosophy | Active Engagement |
| 💸 Fee Level | Cost competitiveness versus peer index-tracking ETFs | Top-Tier Level |
| 📊 Market Correlation | Checking correlation with a broad US large-cap index | Very High |
| 🌱 ESG Strategy | Assessing suitability of an active engagement approach over simple exclusion | Engagement-Focused |
Shareholder activism activities may not immediately translate into short-term stock price gains. Investors should approach it from an index investing perspective, expecting the market's long-term governance improvement effects.
It is a useful choice for investors who want to invest affordably in leading US companies while supporting healthy corporate change. It is an excellent product to serve as the core anchor of a portfolio.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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