🤝 BFF Take
Same Race, Different Price Tag — VOO Wins on Cost
SPY and VOO both track the S&P 500 and own virtually the same 503 stocks in the same proportions. The meaningful difference is the expense ratio: VOO charges 0.03% per year while SPY charges 0.0945% — more than three times as much. On a $50,000 investment over 20 years at 8% annual returns, that gap compounds to roughly $3,600 in additional fees paid to SPY. For long-term buy-and-hold investors, VOO is the straightforward winner. SPY's advantage — tighter bid-ask spreads and the world's highest trading volume — matters only if you're an active trader executing large orders throughout the day.
📋 Quick Takeaways
💰VOO saves ~$66/year per $10K vs SPY — that gap compounds significantly over decades
🔄Functionally identical: both track the S&P 500 with 99%+ holdings overlap — owning both adds no diversification
🎯Choose SPY if you trade frequently or need tight spreads for large orders; choose VOO for long-term buy-and-hold
📊 Data-Based Take: VOO has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
SPY
State Street SPDR S&P 500 ETF Trust
📋 SPY vs VOO — Key Facts Side by Side
| Metric |
SPY |
VOO |
| Fund Name |
State Street SPDR S&P 500 ETF Trust |
Vanguard S&P 500 ETF |
| Issuer |
State Street |
Vanguard |
| Tracks Index |
S&P 500 |
S&P 500 |
| Expense Ratio |
0.09% |
0.03% ✓ |
| Cost per $10K/yr |
$9.45 |
$3.00 |
| AUM |
$735.1B |
$1,600.2B |
| Holdings |
503 |
503 |
| Inception |
1993 |
2010 |
| 1-Year Return |
+30.23% |
+30.31% |
| 3-Year Return |
+23.53% |
+23.64% |
| 5-Year Return |
+13.75% |
+13.83% |
| Avg Bid-Ask Spread |
0.00% |
0.00% |
Expense ratio, AUM, and returns updated May 25, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 SPY vs VOO — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy SPY or VOO?
Choose if...
SPY
- You want focused large-cap US stock exposure via S&P 500
- You already use State Street and prefer staying within their fund family
Choose if...
VOO
- You want the lowest fees — saves ~$6/yr per $10K vs SPY
- You want focused large-cap US stock exposure via S&P 500
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❓ SPY vs VOO — Frequently Asked Questions
What is the main difference between SPY and VOO?
Both SPY and VOO track the S&P 500 index and hold the same 500+ large-cap US stocks. The key difference is cost: VOO charges a 0.03% expense ratio while SPY charges 0.0945% — over 3x more expensive. SPY has higher daily trading volume, which benefits institutional traders and options market participants. For individual long-term investors, VOO's lower cost is almost always the better choice.
Is SPY or VOO better for long-term investing?
VOO is generally better for long-term buy-and-hold investing due to its lower expense ratio (0.03% vs 0.0945%). Over 30 years, the difference in fees compounds significantly. On a $100,000 investment at 8% annual returns, VOO's lower cost saves approximately $7,000+ compared to SPY. The performance difference between the two is negligible since they track the same index — it all comes down to what you pay.
Why is SPY more expensive than VOO if they track the same index?
SPY was launched in 1993 as the first-ever US ETF, and its trust structure (a Unit Investment Trust) is less flexible than the more modern fund structures used by VOO. SPY has also maintained its higher expense ratio partly because its massive trading volume and liquidity make it the dominant choice for institutional traders and options strategies, where a few basis points of fee difference matter less than liquidity. Individual investors rarely need SPY's liquidity premium.
Can I own both SPY and VOO?
Technically yes, but there's little reason to. SPY and VOO have virtually identical holdings — owning both just means you're paying fees twice for the same exposure. If you hold SPY in one account and VOO in another (e.g., taxable vs. Roth IRA), that's fine, but you're not gaining diversification. Pick one and stick with it.
What is the 10-year performance of SPY vs VOO?
SPY and VOO have nearly identical 10-year performance records because they track the same index. Any return difference is typically within 0.01–0.05% per year, explained almost entirely by the gap in their expense ratios. VOO's slightly lower fees mean it tends to fractionally outperform SPY over long periods — consistent with the principle that lower costs lead to better net returns for index funds.
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ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.