SPY vs SPLG: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between SPY and SPLG

SPY (SPDR S&P 500 ETF Trust) is a u.s. large-cap blend fund managed by State Street Global Advisors. SPY was the very first ETF listed in the United States and remains the most heavily traded ETF in the world. Like VOO, it tracks the S&P 500 index, but SPY is especially popular among active traders due to its enormous daily trading volume. Beginners should know that SPY and VOO hold the same stocks, but SPY has a slightly higher expense ratio.

SPLG (SPDR Portfolio S&P 500 ETF) is a us large-cap blend fund managed by State Street. SPLG tracks the S&P 500 Index at an expense ratio of just 0.02%, making it one of the absolute cheapest ways to own America's 500 largest companies. It is the low-cost sibling of the famous SPY ETF, designed specifically for long-term buy-and-hold investors rather than active traders. The lower share price compared to SPY also makes it more accessible for smaller investment amounts.

The most notable differences are in fees (9.45% vs 0.02%), number of holdings (503 vs 503), and 5-year returns (15.70% vs 14.00%).

Holdings Overlap Analysis

SPY and SPLG share 100% of their top holdings. This means they are very similar funds — owning both would result in significant duplication in your portfolio. For most beginners, choosing one is sufficient.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $38,971 on a $10,000 investment. SPLG saves you more in fees over time.

Which One Should a Beginner Choose?

Choose SPY if: You want active traders who need high liquidity and tight spreads, options traders looking for the deepest options market available, institutional investors executing large block trades. It's managed by State Street Global Advisors with an expense ratio of 9.45%.

Choose SPLG if: You want cost-conscious long-term investors who prioritize the lowest possible fees, beginning investors wanting affordable entry into s&p 500 investing, retirement savers using tax-advantaged accounts where trading volume matters less. It's managed by State Street with an expense ratio of 0.02%.

Can You Own Both SPY and SPLG?

With 100% holdings overlap, owning both means you're essentially doubling down on the same stocks. For beginners, we recommend picking one to keep things simple. If you want more diversification, consider pairing your choice with an international ETF like VXUS or a bond ETF like BND instead.

Frequently Asked Questions