VOO vs SPY: Vanguard 500 ETF or SPDR S&P 500 ETF

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VOO vs SPY

Which offers the best exposure to the S&P 500 index and will bring home better returns

SPY

  • SPY is one of the most heavily traded securities on the planet
  • Expense 0.09%
  • Yield (ttm)²: 2.06
  • SPY is structured as a unit investment trust, and as such it cannot reinvest income in the form of dividends, and it cannot lend out its portfolio securities

VOO

  • Vanguard benefits from more modern legal structure
  • Expense 0.05% (***lower than SPY!!!)
  • Yield (ttm)²: 2.05 (***pretty much equal to SPY!!!)
  • Does allow for reinvestment of dividend payments and securities lending will result in better tracking performance

One year VOO vs SPY comparison chart:

voo vs spy

As you can see VOO highs (in red) are generally higher and lows are generally lower when compared to SPY.  VOO is down -1.87% while SPY is down -2.15%.

Due to lower fees and securities lending which results in superior tracking performance the pick here is VOO (Vanguard 500 ETF).

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