SPYvs VOO

Quick verdict

SPDR S&P 500 ETF Trust (SPY) and Vanguard S&P 500 ETF (VOO) are often compared by investors building a core portfolio. Their holdings overlap by roughly 45.5% (high overlap), sharing 10 of their top positions. VOO is cheaper at 0.09% vs 0.03%, VOO pays more income, and SPY has the stronger recent track record. On balance VOO scores higher, but if overlap is high you likely only need one of the two.

Holdings overlap

SPY and VOO overlap by about 45.5% across their largest holdings, which is high. Holding both would largely duplicate exposure — you would pay two expense ratios for similar returns. Most investors should pick one.

2-year relative performance

At-a-glance comparison

Cost

VOO is the lower-cost fund. SPY charges an expense ratio of 0.09% versus 0.03% for VOO. On a $10,000 position that is about $9 vs $3 per year — small, but it compounds over decades.

Income & yield

SPY yields 1.2% and VOO yields 1.3%, so VOO is the stronger choice for income-focused investors. Higher yield can reflect a value or covered-call strategy rather than simply "more free money," so check the category: US Large-Cap Blend vs US Large-Cap Blend.

Performance

Over five years SPY has returned 5.7% annualised against 5.2% for VOO; on a three-year basis it is 15.2% vs 8.2%. SPY leads recently, though past performance does not predict future results and is heavily influenced by sector weightings.

Structure & diversification

SPY holds about 251 positions (US Large-Cap Blend, State Street); VOO holds about 209 (US Large-Cap Blend, Vanguard). SPY is the more diversified by raw holding count, and AUM is 111.0B vs 283.8B — larger funds tend to be more liquid with tighter spreads.

Which ETF fits which investor

For the lowest cost, choose VOO. For the most income, VOO. For growth exposure, SPY. Given 45.5% overlap, holding both mainly makes sense if you specifically want to tilt toward one strategy — otherwise pick the single fund that matches your goal. This is a factual comparison, not advice.

• Lowest cost: VOO
• Most income: VOO
• Growth exposure: SPY

Frequently asked questions

How much do SPY and VOO overlap?

Their largest holdings overlap by approximately 45.5% (high), sharing 10 top positions. Owning both largely duplicates exposure.

Which is cheaper, SPY or VOO?

VOO is cheaper, with an expense ratio of 0.03% versus 0.09%.

Which has the higher dividend yield?

SPY yields 1.2% and VOO yields 1.3%, so VOO pays more income.

Should I own both SPY and VOO?

With 45.5% overlap, owning both mostly duplicates your exposure while paying two expense ratios — most investors pick one.

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