Is the expense ratio difference between VOO and SPY meaningful?

Over 30 years, the ~0.06% difference compounds to roughly 1.8% of additional returns for VOO. On a $100,000 starting investment, that's $1,800+ in lost returns for SPY holders.

Why do institutions still use SPY?

Options market depth and intraday liquidity. For a $50M block trade, SPY's spread is much tighter than VOO's. The 0.06% expense difference is irrelevant to traders holding for hours or days.

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ETF Comparison

VOO vs SPY: S&P 500 ETFs Compared

Both track the S&P 500. VOO charges 0.03%; SPY charges 0.0945%. Compare expense, structure, liquidity, and which is right for you.

Data as of April 25, 2026

VOO

Vanguard S&P 500 ETF

Vanguard

Broad Market

Price

$656.42

Yield (TTM)

1.16%

SPY

SPDR S&P 500 ETF Trust

State Street SPDR

Broad Market

Price

$713.94

Yield (TTM)

1.24%

Quick Comparison Summary

VOO vs SPY: compare dividend yield (1.2% vs 1.2%), expense ratio (0.03% vs 0.09%), holdings, returns, and our verdict for dividend investors.

Side-by-Side Metrics

Metric	VOO	SPY
Issuer	Vanguard	State Street SPDR
Inception	2010-09-07	1993-01-22
Category	Broad Market	Broad Market
Price	$656.42	$713.94
NAV	$656.53	$713.94
Dividend Yield (TTM)	1.16%	1.24%
Expense Ratio	0.03%	0.09%
Distribution Frequency	Quarterly	Quarterly
AUM	$910.2B	$723.4B

Total Returns

3Y and 5Y figures are annualized. A 0% value indicates the fund had not been listed for the full period.

Holdings & Sector Exposure

VOO

Top 5 / 5 shown

MSFT
Microsoft
7.18%
AAPL
Apple
6.84%
NVDA
NVIDIA
6.42%
AMZN
Amazon
3.76%
META
Meta Platforms
2.58%

Sector Weights

Information Tech30.2%
Financials13.4%
Health Care11.6%
Consumer Disc.10.5%
Communication9.1%
Industrials8.3%

SPY

Top 5 / 5 shown

MSFT
Microsoft
7.16%
AAPL
Apple
6.82%
NVDA
NVIDIA
6.40%
AMZN
Amazon
3.74%
META
Meta Platforms
2.56%

Sector Weights

Information Tech30.1%
Financials13.4%
Health Care11.5%
Consumer Disc.10.5%
Communication9.0%
Industrials8.3%

Pros & Cons

VOOPros

Lower 0.03% expense ratio
Open-end ETF structure (can reinvest dividends internally)
Same index, same returns

SPYPros

Highest liquidity of any U.S. ETF
Most active options market on any equity
Longest track record (since 1993)

VOOCons

Slightly less intraday liquidity than SPY
Smaller options market

SPYCons

0.0945% expense — 3x VOO's fee
UIT structure cannot reinvest dividends internally (small cash drag)

The Verdict

VOO wins for buy-and-hold investors; SPY wins for active traders. Both track the S&P 500 with virtually identical performance. VOO costs 0.03% (one-third of SPY's 0.0945%), making it the obvious choice for long-term holders. SPY's unit investment trust structure provides unmatched intraday liquidity and the deepest options market, which matters for active traders and institutions.

Best for

VOO

Long-term, buy-and-hold investors prioritizing low cost

Best for

SPY

Active traders and options users who need maximum liquidity

Strategy Summary

VOO

Tracks the S&P 500 Index — 500 largest U.S. companies, market-cap weighted. The benchmark for U.S. large-cap equity exposure at one of the lowest expense ratios available.

SPY

The original ETF — tracks the S&P 500 Index. Structured as a unit investment trust, which means slightly higher fees than VOO but unmatched intraday liquidity for traders.

Frequently Asked Questions

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Disclaimer: This page is for educational purposes only and is not financial, investment, or tax advice. ETF data is sourced from issuer fact sheets and may be slightly out of date. Past performance is not indicative of future results. Always consult a qualified advisor before making investment decisions.