# VOO vs SPY expense ratio, AUM and liquidity differences

**Published:** 2026-06-30T22:11:34.151Z  
**Topic:** S P 500  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/f50d6b5e-ccb0-4c6c-bb76-31ea853a5d5c

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% |

## Cost and scale

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】.

## Liquidity and trading considerations

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.

## What to watch
- **ETF expense‑ratio trends**: Any fee adjustments by Vanguard or State Street could shift the cost advantage.
- **Trading volume shifts**: Monitor average daily volume reports for SPY and VOO; a narrowing gap may affect liquidity preferences.
- **S&P 500 performance**: Future index returns will test whether the small fee differential materially impacts long‑term outcomes.

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.

## Sources
1. AOL — [Long-Term S&P 500 Holding or Greater Liquidity? VOO vs. SPY](https://www.aol.com/articles/long-term-p-500-holding-155249000.html)
2. The Globe and Mail — [Cost Conscious? Vanguard S&P 500 ETF Tops SPDR Rival](https://www.theglobeandmail.com/investing/markets/stocks/VOO-A/pressreleases/2646566/cost-conscious-vanguard-sp-500-etf-tops-spdr-rival/)

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Cite as: TrendWatcher, "VOO vs SPY expense ratio, AUM and liquidity differences", https://www.trendwatcher.in/article/f50d6b5e-ccb0-4c6c-bb76-31ea853a5d5c