VOO vs SPYG: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between VOO and SPYG

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.

SPYG (SPDR Portfolio S&P 500 Growth ETF) is a us large-cap growth fund managed by State Street. SPYG tracks the S&P 500 Growth Index, offering exposure to the growth-oriented half of the S&P 500 at an ultra-low expense ratio of just 0.04%. It selects stocks based on sales growth, earnings growth relative to price, and price momentum. For cost-conscious growth investors, SPYG delivers nearly identical exposure to pricier alternatives at a fraction of the cost.

The most notable differences are in fees (0.03% vs 0.04%), number of holdings (503 vs 230), and 5-year returns (15.80% vs 17.50%).

Holdings Overlap Analysis

VOO and SPYG share 82% 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 $86 on a $10,000 investment. The cost difference is negligible — choose based on other factors.

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 SPYG if: You want budget-conscious growth investors who want the cheapest possible s&p 500 growth exposure, investors building factor-based portfolios pairing growth and value etfs, young savers in retirement accounts who prioritize long-term capital appreciation. It's managed by State Street with an expense ratio of 0.04%.

Can You Own Both VOO and SPYG?

With 82% 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