VOO has a 0.03% expense ratio while SPY charges 0.0945% - three times more for the exact same holdings.
| Feature | VOO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.0945% | VOO ✓ |
| 10-Year Return | 12.89% | 12.86% | VOO ✓ |
| Assets (AUM) | $656.8B | $618B | SPY |
| Daily Volume | 30M shares | 67.67M shares | SPY |
| Options Volume | <50K contracts | 2M+ contracts | SPY |
| Best For | Buy & hold | Options traders | Depends |
| Dividend Yield | 1.26% | 1.19% | VOO ✓ |
| Official Info | VOO Fund Page | SPY Fund Page | - |
The Verdict: Unless you're actively trading options, VOO is the clear winner.
Both VOO and SPY track the S&P 500 index, meaning they hold the exact same 500 companies in the same proportions. Think of them as identical twins with different price tags.
As we enter 2025, several factors make the VOO vs SPY decision even more important:
The key difference? How much they charge you to own them. For more S&P 500 ETF options, see our guide to the best S&P 500 ETFs.
Our analysis uses data from official fund prospectuses, Morningstar Direct, and CRSP databases. Total returns include reinvested dividends. Expense ratios verified via SEC filings. Calculator assumes constant returns for illustration. Past performance doesn't guarantee future results. Last data refresh: January 13, 2025.
0.03%
Annual Fee
0.0945%
Annual Fee
On a $10,000 investment over 30 years:
You Save $5,400 with VOO
That's 3 months of rent or a year of car payments!
Updated with 2025 market data and fee structures
Ready to invest? Here are the best brokers for purchasing these ETFs:
✨ NEW: All major brokers now offer fractional shares of both SPY and VOO
Three trends to watch that could impact your VOO vs SPY decision:
Spoiler: No. Here's the actual data from Morningstar and official fund reports (SPY, VOO):
| Period | VOO Return | SPY Return | VOO Advantage |
|---|---|---|---|
| 2024 Full Year | 23.36% | 23.30% | +0.06% |
| YTD 2025 | 2.99% | 3.02% | -0.03% |
| 1 Year | 11.30% | 11.30% | 0.00% |
| 3 Years | 17.21% | 17.16% | +0.05% |
| 5 Years | 14.68% | 14.65% | +0.03% |
| 10 Years | 11.21% | 11.17% | +0.04% |
Notice the pattern? VOO consistently outperforms by exactly its fee advantage (0.0645%). This is why expense ratios matter so much for long-term investing.
| Metric | VOO | SPY |
|---|---|---|
| Current Yield | 1.35% | 1.32% |
| Annual Dividend (2023) | $6.42/share | $6.73/share |
| Payment Frequency | Quarterly | Quarterly |
| Ex-Dividend Months | Mar, Jun, Sep, Dec | Mar, Jun, Sep, Dec |
Let's be fair – SPY dominates in one crucial area: options trading. For options education, visit the Chicago Board Options Exchange (CBOE).
| Feature | VOO | SPY |
|---|---|---|
| Daily Options Volume | <50,000 contracts | 2-3 million contracts |
| Strike Price Intervals | $5 increments | $1 increments |
| Expiration Availability | Weekly/Monthly only | Daily (0DTE available) |
| Bid-Ask Spreads | $0.05-0.10+ | $0.01 (penny-wide) |
| After-Hours Options | No | Yes (until 4:15 PM) |
| Tax Feature | VOO | SPY | Impact |
|---|---|---|---|
| Structure | Open-ended ETF | Unit Investment Trust | VOO more flexible |
| In-kind Redemptions | Full ability | Limited ability | VOO more tax-efficient |
| Capital Gains Distributions | Extremely rare | Rare but possible | VOO slight edge |
| Dividend Tax Treatment | Qualified dividends | Qualified dividends | No difference |
Both ETFs are highly tax-efficient, but VOO's structure gives it a slight edge. For detailed tax implications, consult the IRS guidelines on investment income or speak with a tax professional.
Still Unsure? Default to VOO. You can always switch to SPY later if you become an options trader. The reverse switch costs you years of accumulated fees.
For buy-and-hold investors, yes. VOO's 0.03% expense ratio vs SPY's 0.0945% means more money stays invested. They hold identical stocks, so lower fees = better returns. Over 30 years, this difference compounds significantly. Learn more about how expense ratios impact returns.
SPY charges higher fees for several reasons: 1) It's the most liquid ETF on Earth with massive infrastructure costs, 2) First-mover advantage from 1993 created sticky assets, 3) Options market dominance requires market maker support, 4) State Street has no competitive pressure while institutions need SPY for options.
Yes. VOO tracks the S&P 500, which can decline significantly. In 2022, VOO dropped 18.11%. In 2008, it would have dropped 37%. However, the S&P 500 has never lost money over any 20-year period historically and has averaged 10.5% annually since 1957. Read more about S&P 500 historical performance.
In tax-advantaged accounts (IRA/401k): Yes, switch immediately - no tax consequences.
In taxable accounts: Calculate if tax hit is worth it. Generally, keep existing SPY but buy VOO going forward. Consult the IRS guidelines on capital gains.
Valid reasons: Options traders need SPY's liquidity, many 401(k) plans only offer SPY, institutional investors use SPY for hedging. Invalid reasons: Assuming higher price = better quality, not knowing VOO exists, inertia from already owning SPY.
Yes, but with caveats. Fidelity FNILX: 0% expense ratio but only at Fidelity. Schwab SWPPX: 0.02% ratio but it's a mutual fund. For most investors at most brokers, VOO remains the cheapest S&P 500 ETF option. See our guide to zero-fee funds.
SPLG (SPDR Portfolio S&P 500 ETF) has a 0.03% expense ratio matching VOO, but with lower liquidity. It's a good alternative to VOO but doesn't offer any advantages. VOO has more assets and tighter spreads. See our full SPLG vs VOO comparison.
Essentially yes. Both pass through S&P 500 dividends quarterly. VOO typically has a slightly higher yield (1.35% vs 1.32%) because its lower expenses mean more dividends reach investors. Payment dates may differ by a few days.
Very little changed fundamentally. Both funds maintained their expense ratios, continued tracking the S&P 500 identically, and saw record inflows. The main development was SPY's options volume exploding due to 0DTE trading popularity, making it even more dominant for options traders. For buy-and-hold investors, VOO's advantage remains unchanged - same holdings, 3x lower fees.
VOO is the better choice for 99% of investors. Same exact S&P 500 holdings, but VOO's 0.03% expense ratio saves you thousands compared to SPY's 0.0945% fee. Choose SPY only if you're actively trading options where its superior liquidity matters.
Action steps: Switch to VOO in tax-advantaged accounts immediately. For taxable accounts, keep existing SPY but buy VOO going forward. Every basis point in fees compounds against you - in investing, you get what you don't pay for.