Comparing VOO and SPY: The Top ETF for Investing in the S&P 500

Key Points

• The Vanguard S&P 500 ETF (VOO) has surpassed $1 trillion in net assets, making it the largest ETF globally as of June 3, 2023, according to Bloomberg.

• The Vanguard fund has an ultra-low expense ratio of 0.03%, offering a more cost-effective option compared to the State Street SPDR S&P 500 ETF Trust (SPY), which charges 0.0945% and has over $781 billion in assets.

• Over the past five years, the Vanguard ETF has delivered a total return of 324.6%, while the State Street ETF achieved a return of 322.5%.

The Vanguard S&P 500 ETF (NYSEMKT: VOO) became the world’s largest ETF on February 2025 and currently holds more than $1 trillion in assets, surpassing the State Street SPDR S&P 500 ETF Trust (NYSEMKT: SPY), which has over $781 billion in assets. Both funds provide access to the S&P 500 index but differ in cost structures, with VOO’s expense ratio being significantly lower at 0.03% compared to SPY’s 0.0945%.

As of April 30, 2023, the top holdings in VOO include major tech companies such as Nvidia (7.85%), Alphabet (6.52%), Apple (6.45%), Microsoft (4.9%), and Amazon (4.2%). Both ETFs have nearly identical performance, with VOO slightly outpacing SPY in total returns over the past five years.