VOO, SPY and IVV hold the same 500 large US companies in the same proportions, so their returns are nearly identical. The differences are in cost, how they trade and small details that matter for some investors more than others.
Quick comparison
- SPY (SPDR S&P 500 ETF Trust): the oldest and most traded. Expense ratio about 0.09%.
- VOO (Vanguard S&P 500 ETF): expense ratio about 0.03%.
- IVV (iShares Core S&P 500 ETF): expense ratio about 0.03%.
Fees change from time to time, so confirm the current figure on each fund’s page before buying.
Why the fee gap matters
On $10,000, SPY costs about $9 a year and VOO or IVV about $3. That sounds small, but the gap compounds. Over 30 years on a growing balance, the cheaper funds can leave you with thousands more. For a buy-and-hold investor this is the main reason to prefer VOO or IVV.
Why traders still pick SPY
SPY trades far more shares every day, and it has the deepest options market of any ETF. If you trade in and out often or sell options, the tighter spreads and liquidity can be worth the higher fee. Most long-term investors do not need that.
Dividends and structure
All three pay dividends quarterly. SPY is set up as a unit investment trust, which means it cannot reinvest dividends between payouts or lend securities. VOO and IVV can, which gives them a tiny edge in tracking the index. Again, the difference is small.
Which one to choose
- Long-term investing: VOO or IVV. Pick whichever your broker lets you buy commission-free or in fractional shares.
- Active trading or options: SPY.
- Even cheaper: SPLG tracks the same index with an expense ratio near 0.02%, though it trades less.
Holding two of them does not add diversification, because they own the same stocks.
For Canadian investors
These are US-listed funds priced in US dollars. Canadian-listed S&P 500 ETFs such as VFV or XUS hold the same index in Canadian dollars, which avoids currency conversion fees. Which is better for you depends on your account type and whether you want US dollar exposure.
Deciding between just two? Read our head-to-head SPY vs VOO guide, or compare the S&P 500 with the whole market in VTI vs VOO.
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Frequently asked questions
Is VOO better than SPY?
For most long-term investors, yes, because it costs less and tracks the same index. SPY is better for frequent traders.
Do VOO, SPY and IVV have the same returns?
Almost. Over any long period they move within a few hundredths of a percent of each other, with the fee gap explaining most of the difference.
Which pays the highest dividend?
They pay nearly the same yield because they hold the same companies. VOO and IVV come out slightly ahead after fees.
This is general information, not investment advice. See what members are saying about $VOO, $SPY and $IVV in the Smart Money Watch community.
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