The Vanguard S&P 500 ETF (VOO) and the State Street SPDR S&P 500 ETF Trust (SPY) are both major players in the investment space, but they each cater to different investor needs, especially regarding cost and liquidity preferences.
For many long-term retail investors, the decision often hinges on internal expenses and how well the fund tracks its benchmark. While both provide exposure to some of the largest U.S. companies, they have distinct historical backgrounds and varying total assets under management.
Snapshots (Cost and Size)
| Metric | SPY | VOO |
|---|---|---|
| Publisher | SPDR | Vanguard |
| Expense Ratio | 0.09% | 0.03% |
| 1-Year Returns (as of May 18, 2026) | 25.7% | 25.8% |
| Dividend Yield | 1% | 1.1% |
| Beta | 1 | 1 |
| Total Assets | $767.7 billion | $1.6 trillion |
Beta is a measure of price volatility compared to the S&P 500, calculated using five years of monthly returns. One year’s return reflects the total return for the following 12 months. Dividend yield indicates trailing 12-month distribution yield.
Vanguard’s funds tend to be more budget-friendly, with an expense ratio of just 0.03%, which is one-third of SPDR’s. Investors might also notice a slightly higher dividend yield from VOO at 1.1%. Now, a 0.06% difference in fees might not seem significant annually, but over decades, that can really add up.
Performance and Risk Comparison
| Metric | SPY | VOO |
|---|---|---|
| Maximum Drawdown (5 Years) | (27.31%) | (27.87%) |
| $1,000 Growth in 5 Years (Total Return) | $1,920 | $1,925 |
What’s Inside
The Vanguard S&P 500 ETF has 505 holdings and launched in 2010. Key positions include Nvidia at 7.85%, Apple at 6.45%, and Microsoft at 4.9%. In terms of sector distribution, it allocates 35% to technology, 12% to financial services, and 11% to communication services. Its trailing 12-month dividend is $7.13 per share.
Today’s Changes
(0.61%) $4.20
Current Price
$687.04
Key Data Points
Daily Range
$684.50 – $687.80
52 Week Range
$529.11 – $689.10
Volume
100.6K
The State Street SPDR S&P 500 ETF Trust was established in 1993 and consists of 504 stocks. Major holdings include NVIDIA at 8.4%, Apple at 7%, and Microsoft at 4.9%. It has a sector exposure of 37.35% to technology, 12% to financial services, and 11% to communication services. Over the last 12 months, it distributed $7.38 per share.
Today’s Changes
(0.68%) $5.01
Current Price
$747.73
Key Data Points
Daily Range
$744.49 – $748.14
52 Week Range
$575.60 – $749.53
Volume
994.4K
What it Means for Investors
Investing in exchange-traded funds (ETFs) that track the S&P 500 index has become a staple for many investors. Warren Buffett and others have pointed out that for individual investors, leaning towards an S&P 500 index fund is generally a smart move. But given the numerous options available, how does one decide which S&P 500 index fund to opt for?
Both VOO and SPY aim to track the S&P 500 based on total market capitalization, meaning that bigger companies like Nvidia, Apple, and Microsoft comprise a larger slice of the fund. The differences in maximum drawdowns, one-year returns, and five-year growth rates between the two are small; both show a beta of 1, indicating similar volatility compared to the benchmark.
Ultimately, the determining factor for many could be the expense ratio. This fee affects how much investors pay to the brokerage firm managing the fund. VOO’s expense is 0.03%, while SPY’s stands at 0.09%. If you invest $10,000 in one of these funds and add $1,000 annually for ten years with an average return of 10%, your investment in SPY would grow to about $41,594.80, incurring roughly $280 in fees. Meanwhile, a similar investment in VOO would reach about $41,781.29, with fees around $93.56.
