Battle of the S&P 500 ETFs: How VOO Compares to SPY on Fees, Yield, and Risk

Core Insights - The SPDR S&P 500 ETF Trust (SPY) and the Vanguard S&P 500 ETF (VOO) provide similar exposure to large-cap U.S. stocks by tracking the S&P 500 Index, but VOO is distinguished by its lower fees and higher assets under management [1][7]. Cost & Size Comparison - SPY has an expense ratio of 0.09%, while VOO has a lower expense ratio of 0.03%, making VOO more cost-effective for investors [3][8]. - As of December 1, 2025, VOO's one-year return is 13.4%, slightly higher than SPY's 13.3% [3]. - VOO has assets under management (AUM) of $800.2 billion compared to SPY's $672.7 billion, indicating greater liquidity for VOO [3][7]. Performance & Risk Metrics - Both SPY and VOO have a maximum drawdown of -24.5% over the past five years, indicating similar risk profiles [4]. - The growth of $1,000 invested over five years is nearly identical, with SPY growing to $1,885 and VOO to $1,887 [4]. Holdings & Sector Exposure - VOO holds 504 stocks with significant allocations in technology (36%), financial services (13%), and consumer cyclical (11%), closely mirroring the S&P 500 Index [5]. - SPY has a similar structure, holding 503 stocks with the same top sector allocations and major holdings, including Nvidia, Apple, and Microsoft [6]. Investment Considerations - The primary differentiating factor between SPY and VOO is the expense ratio, which can lead to significant savings over time for investors with large account balances [9].