SPY vs VOO: Comparing S&P 500 ETFs

This article compares SPY vs VOO — State Street’s SPDR® S&P 500 ETF Trust and Vanguard’s S&P 500 ETF. 

Both are passively managed index ETFs popular with passive investors looking to match market returns with yields below risk-free high-yield savings rates. 

Index ETFs track market indexes, such as the Dow Jones Industrial Average or the Russell 2000. 

SPY and VOO track the most widely-watched U.S. stock market index: Standard & Poor’s 500.

Both funds own shares of the 500 largest U.S. companies and pay quarterly dividends. 

Bottom Line Upfront (BLUF)

Before I get into the details of SPY vs VOO, it’s essential to keep the following in mind:

• The funds are virtually identical. Don’t overthink your selection. VOO edges SPY slightly in a lower expense ratio.
• Both funds are excellent, low-fee stock index fund options for your portfolio.
• SPY is a State Street ETF. VOO is a Vanguard ETF. 
• Both ETFs are available to purchase from any online broker.
• If you have an account with Vanguard or Fidelity, you can own similar mutual funds (see the mutual funds section). 

Please note that both ETFs update their prospectuses regularly. The information referenced in this article will change over time.

The best resource for both funds is the respective company’s websites.

Here are links to the most recent information at State Street and Vanguard. Consider the information on those pages to be the authoritative data source.

• State Street’s SPDR® S&P 500 ETF Trust (SPY)
• Vanguard’s S&P 500 Index ETF (VOO)

SPY vs VOO Comparison

Side-by-Side

Here’s a side-by-side comparison of both ETFs. Scroll right on mobile.

A few noticeable differences comparing SPY vs VOO:

• SPY is an older fund tracing back to the year 1993. SPY was the first U.S. ETF.  
• SPY is larger, and the price point is higher (though both are insignificant attributes in an investment decision). 
• VOO has a lower expense ratio. SPY has a relatively high expense ratio for an established index ETF of this size. 
• The funds are virtually identical; however, VOO slightly outperforms over all periods due to the lower expense ratio. 

Benchmark Indexes

SPY and VOO track the S&P 500 Index, one of the most widely-watched stock indexes worldwide.

Visit this page for the latest information about the index.

The S&P 500 Index is a float-adjusted market cap-weighted index, meaning the largest stocks make up a proportionately high percentage of the index. Lower market cap stocks comprise a proportionately lower percentage of the index. 

A selection committee of financial market professionals chooses which stocks go into the index. The focus is primarily on large-cap stocks that are representative of the U.S. economy.

The committee does not try to “pick stocks” for market outperformance. Instead, they look at company size, stock liquidity, share float, and profitability, and it fits the index’s goal to reflect the broad, large-cap marketplace accurately.

Performance Chart

Here is a daily updated chart of the performance of a $10,000 investment in both SPY vs VOO over ten years. Scroll right on mobile.

Note that this chart shows the net asset value (NAV) price performance of each ETF after dividend payments. 

Past performance is not indicative of future results. 

The funds have performed in tandem as expected because they track the same index and carry similar expense ratios. The higher SPY expense ratio is mostly insignificant. 

Either fund is suitable as a foundational stock ETF in your portfolio. 

See the table above for up-to-date three-, five-, and ten-year average annual performance records.

Dividend Payout Schedules

Both SPY and VOO pay quarterly dividends. 

Investors receive quarterly dividend payments in March, June, September, and December.

Top Ten Holdings

Here are the top ten holdings for each index fund. Visit the links at the beginning of the article for the most updated lists. 

Learn more about the S&P top 50 holdings.

Though the funds are nearly identical, the timing of reporting and transactions may vary, causing slight imbalances between funds. 

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Mutual Fund Equivalents

Here are the closest mutual fund equivalents for both ETFs.

• SPY = FXAIX (Fidelity)
• VOO = VFIAX (Vanguard)

The SPY mutual fund equivalent at Fidelity is the 500 Index Fund (FXAIX). Investors with an account at Fidelity who prefer mutual funds can consider this fund an a SPY alternative.

The VOO mutual fund equivalent at Vanguard is the S&P 500 Index Fund Admiral Shares (VFIAX). Investors with an account at Vanguard who prefer mutual funds can consider this fund a VOO alternative.

Customers of online brokers that charge fees for mutual funds should use the VOO or SPY ETFs.

Mutual funds trade differently than ETFs, which trade like stocks. 

ETFs are easier to own, and the price changes throughout the day. Mutual funds only trade at the market close. 

Active investors typically use ETFs for trading purposes or to buy and hold indexes when they can’t access index mutual funds.

For example, if you have an investing account with a popular stock trading app, you’d invest via ETFs instead of mutual funds. If your account is with Vanguard, you may benefit from using the index fund VFIAX because it’s slightly easier to reinvest capital gains and dividends. 

• Learn more about FXAIX here
• Learn more about VFIAX here 

Use the above resources to find the most up-to-date information regarding FXAIX vs VFIAX.

SPY vs VOO vs IVV

SPY is the largest ETF of the three. 

However, the three ETFs are virtually identical, aside from the higher SPY expense ratio, which is three times that of SPY and VOO at 0.09.

Own either IVV or VOO to save 0.06 in fees.

Read more: VOO vs IVV 

Best Broker to Buy SPY or VOO

Fidelity and Vanguard are excellent choices for long-term retirement investors. You’re in good hands if your IRA or employer-sponsored plan is with either broker.

Here is my list of more user-friendly online brokers for investing in ETFs and automatically reinvesting dividends. 

Conclusion

Deciding between SPY vs VOO depends on your preference for State Street or Vanguard.

Aside from the fund administrator, the expense ratio is the only other significant distinguisher between SPY and VOO. 

However, even a 0.06 higher expense ratio is insignificant. SPY is a widely-owned ETF with high liquidity. It’s the oldest and most well-known ETF in the U.S. Investors should be comfortable owning either fund. 

If you need a distinguisher, choose VOO over SPY because of the expense ratio. 

Otherwise, don’t overthink your selection. Returns, liquidity, and dividends will be nearly identical. 

Purchase either ETF at any commission-free online broker. 

Please reply with your questions regarding SPY vs VOO in the comments section below. Include any requests you have about adding more detail to this article. 

Read more:

• VOO vs VTI
• VTI or SPY?
• SCHD vs VOO
• FXAIX vs VOO
• QQQ vs VOO

Disclosure: The author does not own either fund but may own a position in the top ten holdings of each fund.