Is VOO better than SPY?

For long-term holding, usually yes in a small way: VOO charges 0.03% per year versus SPY’s 0.09%, with identical index tracking. SPY’s advantage — enormous trading volume and the deepest options market — matters mainly to active traders.

Do VOO, IVV, SPY, and SPLG hold the same stocks?

Yes. All four track the S&P 500 index and hold the same ~500 companies in the same weights. Their returns differ only by their fees and tiny tracking variations, typically hundredths of a percent per year.

Which S&P 500 ETF is best for beginners?

SPLG is the most beginner-friendly on both dimensions: the lowest expense ratio (0.02%) and the lowest share price (under $100), which helps if your broker doesn’t support fractional shares. VOO and IVV are equally sound choices.

Should I switch from SPY to VOO?

If the position is in a taxable account, selling can trigger capital-gains tax that outweighs decades of the 0.06% fee difference. The fee comparison matters most for new purchases, not for switching existing holdings.

VOO vs SPY vs IVV (and SPLG): S&P 500 ETFs Compared

VOO, SPY, IVV, and SPLG all hold the same 500 companies in the same proportions and move within hundredths of a percent of each other. Picking between them is not a high-stakes decision — but the small differences do map onto different kinds of investors.

This comparison covers the four differences that exist: cost, share price, liquidity, and structure — and who should care about each.

The one-table answer

VOO (Vanguard): 0.03% annual fee, share price in the hundreds of dollars. IVV (iShares): 0.03%, similar price range. SPLG (SPDR Portfolio): 0.02%, the cheapest fee and the lowest share price (under $100). SPY (SPDR): 0.09%, the original ETF from 1993 and the most heavily traded security in the world.

Performance across all four is functionally identical — they track the same index, and the fee difference between 0.02% and 0.09% amounts to $7 per year on $10,000 invested.

Fees: small numbers, small stakes

The expense ratio is deducted automatically from the fund’s returns — you never receive a bill. At these levels the difference is minor: over 30 years, 0.02% vs 0.09% on a $10,000 lump sum works out to roughly a few hundred dollars.

It is still free money to keep. If you are choosing fresh with no other constraints, the cheaper funds (SPLG, VOO, IVV) are the rational default for buy-and-hold.

Share price and fractional investing

If your broker offers fractional shares, share price is irrelevant — "$50 of VOO" works fine. If it doesn’t, share price decides your minimum ticket: SPLG (under $100) lets you invest small amounts and deploy round numbers more precisely than funds trading at several hundred dollars per share.

Liquidity: why traders pick SPY

SPY trades hundreds of billions of dollars in volume and has the deepest options market in existence. For day traders and institutions moving large size quickly, that liquidity is worth the higher fee.

For a long-term investor buying monthly, VOO/IVV/SPLG liquidity is more than sufficient — spreads are typically a cent. Paying SPY’s 0.09% for liquidity you will never use is the one clearly avoidable mistake in this comparison.

So which one?

Long-term investor, small or regular contributions: SPLG — lowest fee, lowest share price.

Long-term investor who values the biggest fund brands: VOO or IVV — identical fees, enormous funds, nothing to worry about.

Active trader or options user: SPY — the liquidity and options chain are unmatched.

Already own one of them? Switching is rarely worth it — selling can trigger taxes that dwarf decades of fee differences. The differences here matter at purchase time, not after.

VOO vs SPY vs IVV: Which S&P 500 ETF Should You Pick?