ETF Comparison

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

A head-to-head comparison of SPDR S&P 500 ETF Trust and Vanguard S&P 500 ETF covering yield, cost, risk, and income potential.

Data updated July 4, 2026

State Street

ETFs182

Total AUM$2107B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on SPY.

See all State Street ETFs

Vanguard

ETFs115

Total AUM$4484B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VOO.

See all Vanguard ETFs

Side-by-side snapshot

	SPY	VOO
Full name	SPDR S&P 500 ETF Trust	Vanguard S&P 500 ETF
Issuer	State Street	Vanguard
Last Close	$744.78 as of July 4, 2026	$684.84 as of July 4, 2026
Distribution yield	1.02%	1.15%
Distribution Safety Score	100	100
Expense ratio	0.10%	0.03%
AUM	$783B	$1033B
Distribution frequency	Quarterly	Quarterly
Underlying index	S&P 500 Index	S&P 500 Index
Objective	Track the S&P 500 Index before expenses.	Track the performance of the S&P 500 Index, representing 500 of the largest U.S. companies.
Asset class	Equity	Equity
Inception date	01/22/1993	09/07/2010
Beta	1.0	1.0
Last dividend	$1.9035	$1.9622
Ex-dividend date	09/18/2026	06/26/2026

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

SPY has lagged VOO over the trailing twelve months, posting a 21.61% total return against 21.69%. The lead holds up over 10 years too: VOO has compounded at 15.38% a year, against 15.30% for SPY. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	5Y	10Y	Since Sep 2010	Volatility	Sharpe	Sortino	Max drawdown
SPY	9.32%	21.61%	20.24%	13.05%	15.30%	14.82%	15.2%	0.92	1.33	-18.8%
VOO	9.34%	21.69%	20.30%	13.11%	15.38%	14.91%	14.9%	0.95	1.36	-18.7%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Sep 2010” measures every fund from September 9, 2010 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

SPY (SPDR S&P 500 ETF Trust) and VOO (Vanguard S&P 500 ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VOO offers the higher yield at 1.15% vs 1.02% for SPY. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VOO is cheaper with an expense ratio of 0.03% compared to 0.10%.

VOO is the larger fund by assets ($1033B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, SPY would generate roughly $8.50/month, while VOO would produce $9.58/month, at current distribution rates. Both pay quarterly distributions.

SPY yield1.02%

VOO yield1.15%

Monthly diff on $10K$1.08

Cost & efficiency

Over 10 years on $10,000, SPY would cost approximately $100 in fees vs $30 for VOO (simplified, not compounded). The $70.00 difference may be offset by yield or performance.

SPY ER0.10%

VOO ER0.03%

Strategy & risk

Both SPY and VOO wrap S&P 500 Index with similar strategies (large cap and large cap). The practical differences are yield target, fee structure, and issuer track record — not the underlying mechanic.

SPY beta1.0

VOO beta1.0

Fund details

SPY is managed by State Street (launched 01/22/1993) with $783B in assets. VOO is managed by Vanguard (launched 09/07/2010) with $1033B in assets.

SPY AUM$783B

VOO AUM$1033B

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Frequently asked questions

Is SPY or VOO better for dividend income?

It depends on your goals. VOO currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between SPY and VOO?

Both SPY (SPDR S&P 500 ETF Trust) and VOO (Vanguard S&P 500 ETF) track S&P 500 Index with similar approaches — the labels "large cap" and "large cap" describe closely related mechanics. The real differences show up in yield target (1.02% vs 1.15%), expense ratio (0.10% vs 0.03%), and issuer (State Street vs Vanguard).

Can I hold both SPY and VOO?

You can, but expect significant overlap. Both funds use similar strategies on S&P 500 Index, so holding them together gives you two wrappers around effectively the same exposure — not true diversification. Weigh issuer, fee, and yield differences rather than treating them as complementary.

Which has lower fees, SPY or VOO?

SPY has an expense ratio of 0.10% while VOO charges 0.03%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SPY vs VOO generate?

At current rates, $10,000 in SPY would generate roughly $8.50 per month ($102.00 annually). The same in VOO would produce about $9.58 per month ($115.00 annually).

Which has performed better historically, SPY or VOO?

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SPY vs VOO — at a glance

Generated June 2026 from current fund data.

Overview

SPY and VOO are both passively managed ETFs tracking the S&P 500 Index, holding the same 500 large-cap U.S. stocks in identical weights. The funds are nearly fungible on strategy but differ materially on cost: VOO's 0.03% expense ratio undercuts SPY's 0.10% by 7 basis points annually, and VOO has grown to become the larger fund by AUM ($1033B vs. $783B). SPY, launched in 1993, predates VOO by 17 years and carries a modest yield premium.

How they differ

The primary difference is expense ratio. VOO charges 0.03% while SPY charges 0.10%, a 7-basis-point gap that compounds over decades into meaningful performance separation. On a $100,000 investment, that spread costs SPY investors roughly $70 more per year in direct fees.

Second, VOO has captured significantly more assets—$1033B to SPY's $783B—which amplifies its scale advantage and narrows the cost-to-serve differential for new investors. SPY yields 1.04% against VOO's 1.11%, a modest 7-basis-point edge that partially offsets SPY's fee disadvantage but doesn't close it. Both funds settle quarterly distributions and carry identical market beta (1.0), so tracking error from holdings or rebalancing is immaterial.

Who each is best for

SPY: Fits investors with a long history trading the fund or those who value the 30-year track record and institutional familiarity that comes with the oldest U.S. equity ETF.

VOO: Designed for buy-and-hold investors prioritizing cost efficiency and willing to accept that VOO's newer inception date (2010) carries no meaningful risk penalty given identical index exposure and vastly lower fees.

Key risks to know

Index concentration in mega-cap tech. Both funds carry identical exposure to the "Magnificent Seven" and other technology leaders, which now represent roughly a third of S&P 500 market weight. A sustained tech correction would hurt both equally.

Tracking error from cash drag and fund flows. Large inflows or outflows can create temporary cash positions that lag the index; SPY's higher expense ratio may amplify this drag on a percentage basis, though the effect is typically small.

Tax drag from quarterly dividend reinvestment timing. Investors must reinvest dividends at whatever price prevails at the distribution date; if markets rally sharply between ex-dividend and payment dates, reinvestment occurs at a higher cost. This timing risk is identical for both funds.

Bottom line

If you prioritize minimizing annual costs on a passive S&P 500 position, VOO's 7-basis-point fee advantage and larger asset base make it the economically cleaner choice over a multi-decade horizon. If you already own SPY or value its longer institutional history, the fee gap alone doesn't justify switching. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.