VOO vs SPY: Head-to-Head Comparison
VOO vs SPY: Vanguard S&P 500 ETF has an expense ratio of 0.03% while SPDR S&P 500 ETF Trust charges 9.45%. VOO holds 503 securities vs SPY's 503. 5-year returns: 15.80% vs 15.70%.
Last updated: April 2026
S&P 500
Quick Verdict
VOO edges out SPY with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | VOO | SPY |
|---|---|---|
| Expense Ratio | 0.03% | 9.45% |
| AUM | $560.0B | $600.0B |
| Dividend Yield | 1.30% | 1.20% |
| Holdings | 503 | 503 |
| 1-Year Return | 26.70% | 26.50% |
| 5-Year Return (Ann.) | 15.80% | 15.70% |
| 10-Year Return (Ann.) | 13.30% | 13.20% |
| Beta | 1.00 | 1.00 |
| P/E Ratio | 25.8 | 25.8 |
VOO 5-year annualized return is 15.80% compared to SPY's 15.70%. Over 10 years, VOO returned 13.30% vs SPY's 13.20%.
View data table
| Period | VOO Return | SPY Return |
|---|---|---|
| YTD | 3.20% | 3.10% |
| 1 Year | 26.70% | 26.50% |
| 3 Year | 11.20% | 11.10% |
| 5 Year | 15.80% | 15.70% |
| 10 Year | 13.30% | 13.20% |
Key Differences Between VOO and SPY
VOO (Vanguard S&P 500 ETF) is a u.s. large-cap blend fund managed by Vanguard. VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.
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.
The most notable differences are in fees (0.03% vs 9.45%), number of holdings (503 vs 503), and 5-year returns (15.80% vs 15.70%).
VOO vs SPY multi-factor comparison: VOO has a 0.03% expense ratio, 15.80% 5-year return, 503 holdings, 1.00 beta, and 1.30% yield. SPY has 9.45% expense ratio, 15.70% 5-year return, 503 holdings, 1.00 beta, and 1.20% yield.
View data table
| Metric | VOO | SPY |
|---|---|---|
| Expense Ratio | 0.03% | 9.45% |
| 5-Year Return | 15.80% | 15.70% |
| Holdings | 503 | 503 |
| Beta | 1.00 | 1.00 |
| Dividend Yield | 1.30% | 1.20% |
Want the full framework? This 2-hour ETF course teaches you exactly how to pick, buy, and hold profitable ETFs — from zero to confident investor. Under $15.
Ready to invest? Open an IBKR account in 10 minutes and get free stock. $0 commissions on US ETFs • Fractional shares from $1 • 150+ global markets.
Holdings Overlap Analysis
100%
Holdings Overlap
VOO and SPY 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.
VOO and SPY share 100% of their top holdings (high overlap). VOO has 503 total holdings and SPY has 503. Common holdings include AAPL, MSFT, NVDA.
View data table
| Metric | VOO | SPY |
|---|---|---|
| Overlap | 100% | 100% |
| Unique Holdings | 0% | 0% |
| Total Holdings | 503 | 503 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
VOO
Fee cost: $258
SPY
Fee cost: $39,143
Over 20 years, the fee difference amounts to $38,885 on a $10,000 investment. VOO saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, VOO (0.03% fee) grows to $46,351 while SPY (9.45% fee) grows to $7,467. The fee difference costs $38,884.
View data table
| Year | VOO Value | SPY Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,673 | $9,296 |
| 10 | $21,529 | $8,641 |
| 15 | $31,590 | $8,032 |
| 20 | $46,351 | $7,467 |
Which One Should a Beginner Choose?
Choose VOO if: You want beginning investors looking for a simple core portfolio holding, long-term buy-and-hold investors seeking broad u.s. market exposure, cost-conscious investors who want minimal fees. It's managed by Vanguard with an expense ratio of 0.03%.
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%.
Can You Own Both VOO and SPY?
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
Should I buy VOO or SPY?▾
VOO edges out SPY with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors. However, both are solid options. VOO is best for investors who want beginning investors looking for a simple core portfolio holding, while SPY is better suited for active traders who need high liquidity and tight spreads.
What is the difference between VOO and SPY?▾
VOO (Vanguard S&P 500 ETF) tracks u.s. large-cap blend investments with 503 holdings and a 0.03% expense ratio. SPY (SPDR S&P 500 ETF Trust) focuses on u.s. large-cap blend with 503 holdings at 9.45%. Their top holdings overlap by 100%.
Can I own both VOO and SPY?▾
Since VOO and SPY have 100% holdings overlap, owning both means significant duplication. Most beginners are better off choosing one.