SPLG vs VOO: Which Is the Better Pick in 2026?

Overview

SPLG and VOO are both low-cost ETFs tracking the S&P 500 Index, designed to give you broad exposure to 500 of the largest U.S. companies. The critical difference is scale: VOO manages $1.42 trillion in assets versus SPLG's $97 billion, making VOO one of the largest equity ETFs globally. Both charge minimal fees—0.03% for VOO and 0.02% for SPLG—and distribute dividends quarterly, so the practical difference between them comes down to liquidity, fund structure, and which issuer you prefer to work with.

How they differ

VOO dwarfs SPLG in size, which matters for trading costs and fund stability. VOO's $1.42 trillion in AUM means tighter bid-ask spreads and deeper liquidity than SPLG's $97 billion—a meaningful advantage if you're trading large positions or rebalancing frequently. SPLG edges out VOO on expense ratio (0.02% vs. 0.03%), saving you one basis point annually, though that $1 difference on a $10,000 investment is negligible. Both funds yield around 1.1% annually from dividends and move in lockstep with the S&P 500 (beta of 1.0). VOO is older in fund age, but SPLG has been around since 2005, so both have stable track records. The funds track identical indexes, so performance will be nearly identical before fees—VOO's cost advantage should disappear into rounding.

Who each is best for

SPLG: Investors who prioritize the absolute lowest expense ratio and are willing to accept slightly lower trading liquidity; often a good fit for smaller accounts or those planning to buy and hold for many years.

VOO: Anyone trading regularly, rebalancing large positions, or building a core portfolio; the deep liquidity and minimal spread make it the practical default for most investors, despite the one-basis-point fee disadvantage.

Key risks to know

• Index concentration risk. Both funds hold the same 500 companies, so they move together and are exposed to broad market downturns. A decline in mega-cap tech or financial stocks hits both equally.

• Tracking error from fees. SPLG's lower fee (0.02%) will outperform VOO by roughly 0.01% per year after expenses, a trivial but real advantage offset by liquidity concerns.

• Trading cost asymmetry. SPLG's smaller size means wider spreads during volatile market conditions; VOO's liquidity advantage could save you money in execution, especially for large orders.

• Dividend reinvestment timing. Both funds pay quarterly, so the exact timing of your dividend reinvestment will vary slightly quarter to quarter based on when distributions land.

Bottom line

If you value raw expense efficiency and are comfortable with a smaller fund, SPLG wins by a hair. If you're building a core position and want the deepest liquidity and tightest trading spreads, VOO's size advantage is the better practical choice—the one-basis-point fee difference is noise compared to better execution. Both will track the S&P 500 closely over long periods. Past performance doesn't predict future results.