VOO VS SPY: Which is better?

Today, investing in Exchange Trade Funds (ETFs) that track the S&P 500, has been a popular choice for retail investors as well as financial advisors and the largest two players are SPY S&P 500 ETF Trust and VOO (Vanguard S&P 500 ETF).

Thre are two giant Exchange Traded Funds ETFs Vanguard S&P 500 ETF(VOO) and the SPDR S&P500 ETF Trust (SPY) commonly reffed to as Index funds are competing in the market, and representing the US stock market’s performance. Both have professionally managed portfolios including human-operated and robo-advisors.

 The investors are keen to know which is the better option to invest.

This post will get you covered with all the information regarding voo vs spy. Continue reading it.

What are VOO and SPY

VOO and SPY, both are index funds that track the leading  S&P 500 index of the USA. Being a passive fund its function is just to match the performance of the underlying index.  Basically, Passive funds have has very low expense ratio.

The largest mutual fund issuer  VOO is a wing of the Vanguard S&P 500 ETF Group which possesses around $7 trillion in total assets and is the second largest ETF provider in the world.

Sponsored by State Street Global Advisors Trust Company (SSGA,) the SPY also tracks the S&P 500 Index and is one of the leading ETF providers in the USA.

The Difference between VOO and SPY

When it comes to differentiating the two index funds VOO has a lower expense ratio of 0.03% while SPY has 0.0945%.

Functioning similarly, both the funds track the S&P 500 index and have a similar returns. Stiil, VOO offers a little bit higher returns over the long term due to lower fees.

The most important difference is both are ETFs and Vanguard offers VOO while State Street Global Advisor’s trust offers SPY.

VOO vs SPY

Key facts about VOO

• It tracks the S&P 500 index

• It has an expense ratio of 0.03%

• It doesn’t have fractional shares

• It holds 508 stocks

Key facts about SPY

• SPY tracks the S &P 500 index.

• Offers an expense ratio 0.0945%

• It holds 506 stocks.

The common fact is both the ETFs track the returns of the S & P index in the USA.

About 500 large companies in the US are investing in it which has about 3quarters  of the US Stock market value.

To delve into it must visit the site The Money Flow.net once.

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