VOO vs. SPY: Same Index — But One Costs 3x More. Which S&P 500 ETF Should You Buy?

Investors looking for simple, low-cost exposure to the U.S. stock market often turn to S&P 500 ETFs—and two of the most popular options are Vanguard S&P 500 ETF VOO -0.12% ▼ and SPDR S&P 500 ETF Trust SPY -0.11% ▼ . Both funds track the same index and deliver nearly identical performance, but key differences in fees, liquidity, and structure can matter depending on your investing style. Using the TipRanks’ ETF Comparison Tool, we have placed VOO and SPY against each other to find the best ETF for investors in 2026.

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The real difference comes down to cost and structure. VOO charges an expense ratio of just 0.03%, while SPY charges 0.09% — meaning VOO is roughly three times cheaper to hold. For long-term investors, that fee gap compounds significantly over decades, making VOO the mathematically smarter choice for buy-and-hold portfolios.

On the other hand, SPY stands out in one key area: liquidity. It is the most traded ETF in the world, with massive daily volume—making it the preferred choice for traders, institutions, and options investors who move in and out frequently. By comparison, VOO’s average three-month volume is about 9.87 million shares, while SPY sees roughly 83.80 million shares traded daily.

Let’s look at more details

**Vanguard S&P 500 ETF VOO -0.12% ▼ **

The Vanguard S&P 500 ETF is a go-to choice for investors seeking direct exposure to large U.S. companies. It tracks the S&P 500 Index (SPX), a benchmark that’s widely viewed as a snapshot of the overall U.S. stock market and the health of the broader economy.

In terms of holdings, the ETF is heavily weighted toward the technology sector. VOO holds 507 stocks with total assets worth $860.18 billion. The ETF’s 10 largest holdings make up 36.33% of its total assets. That means a bigger portion of VOO’s performance depends on just a handful of mega-cap stocks. VOO’s 5 holdings are Nvidia NVDA -0.30% ▼ , Apple AAPL +0.84% ▲ , Microsoft MSFT -2.74% ▼ , Amazon AMZN -0.98% ▼ , and Alphabet GOOGL -2.54% ▼ .

According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, VOO is a Moderate Buy. The Street’s average price target of $764.64 implies an upside of 26.36%.

**SPDR S&P 500 ETF Trust SPY -0.11% ▼ **

The SPDR S&P 500 ETF Trust (SPY) is one of the most widely traded ETFs in the world, designed to track the performance of the S&P 500 and provide investors with highly liquid exposure to large-cap U.S. stocks.

SPY’s top holdings — NVDA, AAPL, MSFT, AMZN, and GOOGL — are the same as VOO. However, the key difference is scale and diversification. Currently, SPY holds 504 stocks and manages about $653.13 billion in total assets.

According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, SPY is a Moderate Buy. The Street’s average price target of $829.93 implies an upside of 26.4%.

Conclusion

For long-term, buy-and-hold investors, however, VOO’s lower expense ratio gives it a clear edge. With nearly identical exposure to the S&P 500, paying less in fees can make a meaningful difference in returns over time.

That said, SPY still has its place—especially for active traders and institutions that benefit from its unmatched liquidity.

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