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VOO’s 0.03% fee versus SPY’s 0.09% and $1.7 trillion vs $650 billion AUM explain why long‑term investors favor Vanguard while traders prefer SPDR.
VOO’s expense ratio of 0.03% is one‑third of SPY’s 0.09%, giving buy‑and‑hold investors a modest cost edge while SPY’s larger trading volume still makes it the go‑to vehicle for active traders【1】.
| At a glance | |
|---|---|
| Expense ratio | VOO 0.03% vs SPY 0.09% |
| Assets under management | VOO ≈ $1.7 trillion; SPY ≈ $650 billion |
| 1‑yr total return (as of Apr 30 2026) | Both 31.10% |
| Dividend yield (trailing‑12 mo) | VOO 1.19% vs SPY 1.14% |
Both ETFs track the same S&P 500 index, so their five‑year risk metrics—beta of 1.00 and max drawdown of –24.5%—are virtually identical【1】. The primary distinction lies in cost: VOO’s 0.03% expense ratio translates to $3 in fees per $10,000 invested annually, versus $9 for SPY【2】. Over a decade, that $6 annual saving compounds, giving Vanguard a modest but consistent advantage for long‑term holders. In addition, VOO’s assets have grown to roughly $1.7 trillion, surpassing SPY’s $650 billion, reflecting the preference of retail investors for lower‑cost exposure【2】.
SPY, launched in 1993 as the first U.S. ETF, enjoys far higher average daily trading volume—about seven times that of VOO despite its smaller asset base【2】. This depth supports tighter bid‑ask spreads and a robust options market, making SPY attractive for institutional traders and those who need rapid entry or exit. VOO’s lower liquidity is offset by its lower fee and comparable sector composition (technology ~34‑39%, financial services ~11‑12%, communication services ~10‑11%)【1】【2】. For investors focused on cost efficiency rather than intra‑day execution, VOO remains the preferred choice.
The choice between VOO and SPY ultimately reflects an investor’s priority—cost savings for passive, long‑term exposure versus the liquidity and trading tools prized by active market participants. As the S&P 500 continues to evolve, the relative importance of these factors will determine which ETF becomes the dominant benchmark for different investor segments.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 30, 2026 · How we report
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