SPY vs. VOO: Is there any difference? (2024)

FAQs

SPY vs. VOO: Is there any difference? ›

Even though SPY and VOO track the same index, they are not entirely identical in their structure or operation. Notable differences between them include the expense ratios, liquidity, and the fund management's approach.

If you are a cost-conscious investor, the VOO, IVV, and SPLG might make a more attractive option compared to SPY with their lower expense ratios. Conversely, you might appreciate the higher liquidity of SPY if you're an active or institutional trader. Ultimately, VOO, SPY, IVV, and SPLG are all great options.

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.

SPY is the stock code of exchange traded funds that track the performance of the S&P 500 index; It trades like a stock. SPX is only a value representing the level of the Standard & Poor's 500 Index and cannot be traded directly.

VOO earns a top rating of Gold, while SPY earns the next best rating of Silver. Almahasneh says the reason is fees. VOO charges 0.03%, while SPY charges 0.09%. With all else equal, the fund with the lower fee is more aligned with investors' best interests.

Due to its popularity among traders, SPY enjoys higher liquidity. This is evident in its narrower bid-ask spreads, which makes it a favourite among day traders and institutional investors. VOO has slightly lower liquidity, which leads to greater bid-ask spreads.

Vanguard S&P 500 ETF (VOO)

Though the SPDR S&P 500 ETF Trust (SPY) is the oldest and most popular S&P 500 index fund, the VOO is a more attractive option for most long-term investors thanks to a lower cost structure.

Both have the same expense ratio and similar dividend yield, so you should choose whichever one you prefer based on the fund's strategy. If you only want to own the biggest and safest companies, choose VOO. If you want broader exposure and more diversification, choose VTI.

The Vanguard S&P 500 ETF (NYSEMKT: VOO) is a top choice for most index fund investors. Even Warren Buffett recommends it above any other investment. There's a good reason for that. Its low expense ratio and tight index tracking make it a top choice for anyone looking to match the returns of the S&P 500.

Is investing in SPY enough? ›

Thus, SPY is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space. The Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV) track the same index.

SPY Dividend Information

SPY has a dividend yield of 1.33% and paid $6.72 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 15, 2024.

Since it was expanded to include 500 stocks in 1957, the average annualized return in the S&P 500 is closer to 10.15%. That means the average annualized return in SPY is roughly 10%.

Average Return

In the past year, SPY returned a total of 21.88%, which is slightly higher than VOO's 21.42% return. Over the past 10 years, SPY has had annualized average returns of 12.23% , compared to 12.29% for VOO. These numbers are adjusted for stock splits and include dividends.

Key Takeaways. Dividend ETFs invest in high-yielding dividend stocks to maintain a stable, steady income. The S&P 500 is a broad-based index of large U.S. stocks, providing growth and diversification. The best choice for you will depend on whether you prefer income or growth from your investments.

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.