Better S&P 500 ETF: VOO vs. SPY

Better S&P 500 ETF: VOO vs. SPY reflects how two highly similar index funds can still diverge in trader usability, costs, and minimums. The article compares Vanguard’s S&P 500 ETF (VOO) and the SPDR S&P 500 ETF Trust (SPY), both designed to track the S&P 500’s exposure to roughly 500 of the largest U.S. public companies. SPY, listed in January 1993, is the oldest U.S. ETF and is described as especially liquid, averaging about 64 million shares traded daily and charging an expense ratio of 0.0945% (about $9.45 per $10,000). VOO, listed in September 2010, targets long-term buy-and-hold investors with a $1 minimum and a 0.03% expense ratio (about $3 per $10,000). The piece argues that VOO’s lower ongoing cost can compound over decades.