VOO vs SPY: Key Differences in S&P 500 ETFs Explained

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June 8, 2026 – While VOO and SPY both represent the S&P 500 index, allowing investors access to the largest 500 companies in America,

there is a difference between the two investment options in terms of expenses, liquidity, and style of managing funds.

Fees and Cost Difference

One of the biggest differences between the two funds is the expense ratio:

· VOO: ~0.03%

· SPY: ~0.09%

This makes VOO the lower-cost option for long-term investors, while SPY carries higher fees due to its structure and older design.

Liquidity and Trading Activity

SPY is considered one of the most actively traded ETFs globally which results in high liquidity, which attracts short-term traders and option market participants.

VOO, on the other hand, is also considered highly liquid but has less volume of transactions per day compared to SPY.

Similar Performance, Different Structure

Both ETFs offer roughly equal returns over time since they both replicate the same index with similar portfolio compositions.

Differences in their performance would be minimal and would be primarily attributable to costs incurred in the fund management process.

Investor Preference Trends

Both ETFs offer roughly equal returns over time since they both replicate the same index with similar portfolio compositions.

Differences in their performance would be minimal and would be primarily attributable to costs incurred in the fund management process.

Bottom Line

VOO is generally favored for long-term, low-cost investing, while SPY is often preferred by traders who value liquidity and flexibility.