SPY vs VOO
SPDR S&P 500 (SPY) vs Vanguard S&P 500 (VOO) — The two most popular S&P 500 ETFs
Understanding SPY and VOO
SPY (SPDR S&P 500 ETF Trust) is the original S&P 500 ETF, launched in 1993. As the first-ever ETF in the United States, it pioneered passive index investing and remains the most heavily traded ETF in the world. Its massive volume makes it the go-to choice for active traders and options strategies.
VOO (Vanguard S&P 500 ETF) launched in 2010, bringing Vanguard's legendary low-cost approach to S&P 500 investing. With an expense ratio of just 0.03% compared to SPY's 0.09%, VOO has attracted buy-and-hold investors seeking to minimize fees.
The bottom line: Both ETFs track the exact same index with virtually identical returns. The only real difference is cost structure — VOO's lower expense ratio saves long-term investors approximately 0.06% per year, which compounds over time.
Head to Head
SPY and VOO are both S&P 500 ETFs, so their returns are nearly identical. The key differences lie in expense ratio, trading structure, and share price. Here's how they compare.
| Metric | SPY | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | VOO |
| Total Assets | $698.3B | $1.5T | VOO |
| Inception Date | 1993 | 2010 | SPY |
| 1 Year Return | +21.52% | +21.60% | VOO |
| 5 Year Return | +83.25% | +83.88% | VOO |
| 10 Year Return | +289.56% | +292.23% | VOO |
| Volatility (3Y) | 11.6% | 11.6% | Tie |
| Max Drawdown | -50.8% | -23.9% | Tie |
| Current Price | $662.29 | $609.09 | — |
Growth of $10,000
Since both ETFs track the S&P 500, their growth curves overlap almost perfectly. The lines are so close they're nearly indistinguishable — this demonstrates that your choice between SPY and VOO won't significantly impact long-term returns.
Monthly Returns Comparison
The heatmaps below show month-by-month returns for both ETFs. Since they track the same index, the patterns are virtually identical — green indicates positive months, red indicates negative.
SPY Monthly Returns
VOO Monthly Returns
Key Differences
SPY (SPDR S&P 500)
- • The original S&P 500 ETF (1993)
- • Highest trading volume & liquidity
- • Best for active traders & options
- • Unit Investment Trust structure
- • Higher expense ratio (0.09%)
VOO (Vanguard S&P 500)
- • Launched in 2010 by Vanguard
- • Lowest expense ratio (0.03%)
- • Best for buy-and-hold investors
- • ETF structure (more flexible)
- • Can reinvest dividends
10-Year Cost Difference
For a $100,000 investment held for 10 years:
VOO saves you approximately $600 per $100K invested over a decade.
The Bottom Line
Choose SPY if you trade frequently, use options, or need maximum liquidity. Choose VOO if you're a buy-and-hold investor who wants the lowest costs. Both track the exact same index with virtually identical returns.
Frequently Asked Questions
Is SPY or VOO better?
For most long-term investors, VOO is better due to its lower expense ratio (0.03% vs 0.09%). SPY is better for traders who need maximum liquidity or trade options frequently.
Why is SPY more expensive than VOO?
SPY was launched in 1993 as a Unit Investment Trust, which has structural constraints that prevent dividend reinvestment and lead to slightly higher costs. VOO, launched in 2010, uses a more modern ETF structure.
Do SPY and VOO have the same returns?
Yes, both track the S&P 500 index. The only difference in returns comes from the expense ratio — VOO will outperform SPY by approximately 0.06% annually due to lower fees.
Should I sell SPY and buy VOO?
If you're in a taxable account, the tax implications of selling may outweigh the fee savings. In a tax-advantaged account (IRA/401k), switching to VOO can make sense for the lower fees.
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Last updated: 3/16/2026