Same Index, Lower Fees: How SPLG Stacks Up Against SPY

Core Viewpoint - SPLG offers a lower expense ratio compared to SPY, making it more appealing for cost-conscious investors, while SPY provides greater liquidity and a longer track record, attracting institutional investors [1][3][9] Cost & Size Comparison - SPLG has an expense ratio of 0.02%, significantly lower than SPY's 0.09% [2][3] - As of November 10, 2025, both SPLG and SPY reported identical one-year returns of 13.8% and a dividend yield of 1.1% [2][7] - SPLG's assets under management (AUM) stand at $95.7 billion, while SPY's AUM is substantially higher at $693.7 billion [2][5] Performance & Risk Comparison - Over a five-year period, SPLG experienced a maximum drawdown of 24.48%, slightly better than SPY's 24.50% [4] - An investment of $1,000 in SPLG would grow to $1,912, while the same investment in SPY would grow to $1,911 [4] Holdings & Sector Breakdown - SPY holds 503 companies with a significant allocation to technology (36%), followed by financial services (13%) and consumer cyclicals (11%) [5] - SPLG mirrors SPY's sector allocation and leading holdings, providing similar exposure across 504 stocks [6] Investment Strategy Considerations - SPLG is recommended for long-term core positions due to its lower ongoing costs, while SPY is preferred for those needing maximum trading flexibility [9] - Both funds effectively track the S&P 500 index, but the choice between them should align with the investor's strategy and needs [9]