SPY vs SPLG: Two Ways to Own the S&P 500

Core Insights - The main distinction between SPDR Portfolio S&P 500 ETF (SPLG) and SPDR S&P 500 ETF Trust (SPY) is SPLG's lower expense ratio, while SPY is known for its large scale and trading liquidity [1][4] - Both ETFs aim to replicate the performance of the S&P 500 Index by holding large-cap U.S. stocks, serving as foundational elements for diversified portfolios [2] Cost and Size Comparison - SPLG has an expense ratio of 0.02%, while SPY has an expense ratio of 0.09% [3] - As of December 12, 2025, SPLG's one-year return is 14.27% compared to SPY's 14.18% [3] - SPLG has assets under management (AUM) of $95.7 billion, whereas SPY has AUM of $695.8 billion [3] Performance and Holdings - Over a five-year period, $1,000 invested in both SPLG and SPY would grow to $1,826 [5] - SPY holds 503 companies with a sector tilt towards Technology (35%), Financial Services (13%), and Communication Services (11%), with top holdings including Nvidia (7.25%), Apple (7.02%), and Microsoft (6.16%) [5] - SPLG holds 504 stocks with similar sector exposures: Technology (36%), Financial Services (13%), and Consumer Cyclical (11%), with its largest positions being Nvidia (8.34%), Microsoft (6.85%), and Apple (6.79%) [6] Investor Implications - SPLG is designed for long-term holding and cost efficiency, while SPY is tailored for investors needing immediate liquidity and execution [4][8] - The choice between SPLG and SPY reflects an investor's preference for patience versus flexibility in market conditions [9]