SPY vs VOO Overlap: Same Index, Different Cost
Both track the S&P 500. Both hold the same 505 stocks. SPY costs 0.0945%. VOO costs 0.03%. The only reason to prefer SPY is options trading liquidity.
What the SPY and VOO Overlap Means
SPY and VOO are the same fund with different expense ratios. Both track the S&P 500 index — the 505 largest US companies by market cap. Both hold Apple, Microsoft, Nvidia, Amazon, and Meta at nearly identical weights. Their top-10 holdings are the same list. The full-portfolio overlap is effectively 100%.
The cost difference is real and permanent. SPY charges 0.0945% per year; VOO charges 0.03%. On $100,000, that is $65 per year in extra fees from SPY. Over 30 years with 8% annual growth, the compounded fee gap on a $100,000 initial investment is roughly $25,000 in favor of VOO. That is not hypothetical — it is guaranteed drag.
IVV (iShares S&P 500 ETF) is a third option at 0.03% — same cost as VOO, also tracks the S&P 500, and has nearly as much options liquidity as SPY. For buy-and-hold investors: VOO or IVV. For options traders: SPY.
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Top-10 holdings data, updated regularly from public sources. Shared position counts reflect top-10 positions only — not full portfolio overlap. For broad market funds like VTI and VOO, true full-portfolio overlap is significantly higher than the top-10 figure. Nothing here is personalized financial advice. Full disclosures.
Frequently Asked Questions
Yes. Both track the S&P 500 index and hold the same 505 US large-cap stocks at nearly identical market-cap weights. Apple, Microsoft, Nvidia, Amazon, and Meta are the top holdings in both funds. The full-portfolio overlap between SPY and VOO is effectively 100%.
If you are a buy-and-hold investor who does not trade options, yes. VOO charges 0.03% versus SPY's 0.0945% — a guaranteed $65 per year difference per $100,000 invested. In a taxable account, check whether switching triggers a taxable gain before selling. In a Roth IRA or 401(k), switching is straightforward.
SPY was launched in 1993 as the first US ETF. Its fee was set before competitive pressure drove costs down. State Street (SPY's issuer) has kept the fee elevated partly because SPY's options liquidity creates demand from traders willing to pay the premium. For long-term investors who do not trade options, there is no benefit to justify the extra cost.
VOO, on cost. Both track the same index with essentially identical performance before fees. VOO's 0.03% expense ratio vs SPY's 0.0945% is a guaranteed drag on SPY over any time horizon. The compounded cost difference on $100,000 over 30 years at 8% growth is roughly $25,000 in favor of VOO.
Options liquidity. SPY has the most liquid options market of any ETF or stock, with deep bid-ask spreads and enormous volume across hundreds of strike prices and expiration dates. Institutional investors, hedge funds, and individual options traders use SPY for covered calls, protective puts, and spread strategies. That liquidity premium is worth the extra 0.065% for active options traders.