If you've been waiting for Vanguard to split Vanguard S&P 500 (VOO +1.60%) so you can finally afford a share with a budget below $600, I have bad news. Vanguard just announced splits for five of its index ETFs, and its flagship S&P 500 (^GSPC +1.18%) fund didn't make the cut.

Neither did the Vanguard Total Stock Market ETF (VTI +1.36%) fund, Vanguard's oldest and second-largest ETF. You might think it would qualify for a split with share prices north of $300, but it's not on the list.

Here are the five ETFs that made the cut. Some of them have lower share prices than the two top funds.

Data source: Finviz, April 6, 2026.

Share price isn't the whole story

It may seem as if high share prices would be enough to inspire a share split. After all, isn't the whole idea to make shares more accessible to investors? The five ETFs getting the call this time are all dropping their prices from hundreds of dollars to less than $100. A quick 8:1 split would do the same for the Vanguard S&P 500 fund, and the Vanguard Total Stock Market ETF would need only a 4:1 split.

But Vanguard's analysis is more sophisticated than a rigid share price limit. The split announcement isn't hiding that fact, either.

"A number of factors are considered, including ETF market price, bid-ask spread, and trading volume," Vanguard said.

And the thing is, the five chosen ETFs all have much lower trading volume and slightly wider bid-ask spreads than good old VOO and VTI.

Image source: Getty Images.

The hidden cost of every trade

The bid-ask spread is the difference between what buyers are willing to pay and what sellers are asking. Every time you trade, you're effectively paying half that spread as a transaction cost. On a fund like VOO, that cost is roughly a penny per share. On VOOG, it can run as high as $0.45.

That's still not much of a spread in percentage terms, thanks to their lofty share prices. Those potentially inefficient spreads and relatively modest trading volumes were still imperfect enough to result in splits. For a firm known for its minimal ETF fees and maximal shareholder returns, even a modest spread looks like a problem.

For example, buy 100 shares of the Vanguard S&P 500 Growth fund with a $0.45 spread, and you've just donated $22.50 to market makers. That donation isn't even tax-deductible.

Vanguard isn't splitting the Vanguard S&P 500, because the ETF doesn't need help at this point. It's already about as efficient as an ETF can get.

The five funds on the split list are good, but not quite that excellent. Lower share prices should bring in more traders, more volume, and tighter spreads. Vanguard is basically giving these ETFs a tune-up. Founder Jack Bogle would have applauded these modest cost savings.

Smaller shares, smoother trades

If you already own any of these five ETFs, the split changes nothing. You'll have more shares at a proportionally lower price, and the total value stays the same. No tax consequences, no action required.

But if you've been eyeing the ETFs on the split list and waiting for a better entry point, your minimum buy-in is about to go lower. After the splits, you can grab a share of any of these funds for under $90 (assuming they don't skyrocket in the next couple of weeks, of course). That makes it easier to dollar-cost average, round out an incomplete position, or just scratch an investing itch without committing hundreds of dollars.

Vanguard optimized its ETF lineup. As a result, now you can optimize your portfolio a little bit better.