S&P 500 ETF guide
Best S&P 500 ETFs: VOO vs IVV vs SPY
Compare VOO, IVV, and SPY by fees, fund structure, trading use, and risk to find an S&P 500 ETF that fits your goal.
Quick answer
VOO, IVV, and SPY all seek to track the S&P 500, so their underlying exposure is very similar. Long-term investors often start with VOO or IVV because of their low expense ratios, while frequent traders may value SPY's long trading history and active options market. The right choice depends more on cost, trading needs, and account setup than on trying to predict which one will outperform.
Side-by-side comparison
Because these funds track the same index, compare the details that can actually affect your experience: annual cost, liquidity, fund structure, and how you plan to use the ETF.
| ETF | Primary focus | Expense ratio* | Issuer | Inception | May fit |
|---|---|---|---|---|---|
| VOO Vanguard S&P 500 ETF | Low-cost core holding | 0.03% | Vanguard | 2010-09-07 | Buy-and-hold investors building a simple U.S. large-cap core. |
| IVV iShares Core S&P 500 ETF | Another low-cost core option | 0.03% | BlackRock | 2000-05-15 | Long-term investors who prefer the iShares fund family or already use IVV in their account. |
| SPY SPDR S&P 500 ETF Trust | Trading and options liquidity | 0.0945% | State Street | 1993-01-22 | Investors who prioritize active trading, liquidity, or a deep options market. |
* Expense ratios were reviewed against official issuer pages on July 10, 2026 and can change. Verify the latest prospectus, fees, yields, holdings, and performance with the fund issuer before making a decision.
Which ETF fits which goal?
How to choose
Start with your holding period
For a long-term core position, recurring cost deserves more weight. For short-term trading, spreads, volume, and options access may matter more.
Do not chase tiny return gaps
Small historical differences between S&P 500 ETFs can come from fees, trading, and timing. They are not a reliable forecast of the next winner.
Check your brokerage setup
Fractional-share support, automated investing, tax lots, and existing positions can make one otherwise similar fund more convenient.
Frequently asked questions
Is VOO better than SPY?
Neither is universally better. VOO is often considered for long-term holding because of its lower expense ratio, while SPY is often used by active traders because of its liquidity and options ecosystem.
Are VOO and IVV basically the same?
They both seek to track the S&P 500 and therefore hold very similar portfolios. Their issuer, trading details, fund structure, and operational features differ, but long-term performance is generally expected to be close before small fee and tracking differences.
Can an S&P 500 ETF lose money?
Yes. These ETFs invest in stocks and can fall sharply during market declines. Diversification across large U.S. companies reduces single-company risk but does not remove market risk.
Should I own VOO, IVV, and SPY together?
Owning all three usually adds little diversification because they track the same index. It can create duplicate exposure without meaningfully changing the portfolio.
Official fund sources
Fund fees, yields, holdings, and objectives can change. Use the issuer pages below to confirm the latest prospectus and fund data.
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