VOO vs SPY: Which ETF Is Better in 2026?
Short answer
VOO (Vanguard S&P 500 ETF) tracks S&P 500 at 0.03%; SPY (SPDR S&P 500 ETF Trust) tracks S&P 500 at 0.0945%. They track the same index, so the real questions are cost, issuer, and structure. Neither is universally better.
VOO vs SPY at a glance
| VOO | SPY | |
|---|---|---|
| Fund | Vanguard S&P 500 ETF | SPDR S&P 500 ETF Trust |
| Tracks | S&P 500 | S&P 500 |
| Expense ratio | 0.03% | 0.0945% |
| Dividend yield | ~1.3% | ~1.3% |
| AUM | ~$1.2 trillion | ~$600 billion |
| Top holding | MSFT | MSFT |
| Issuer | Vanguard | State Street SPDR |
Approximate as of early 2026; verify with each issuer.
What is VOO?
Tracks the S&P 500 Index, the standard measure of US large-cap equity. Effectively identical exposure to SPY and IVV at a 0.03% expense ratio. Used as a core building block in most diversified portfolios.
What is SPY?
Tracks the S&P 500. Slightly higher expense ratio than VOO (0.0945% vs 0.03%) but dramatically deeper options market, which is why institutional hedgers and traders concentrate on SPY rather than its cheaper Vanguard or iShares siblings.
VOO or SPY: which should you pick?
- Pick VOO if you want S&P 500 exposure at 0.03%.
- Pick SPY if you want S&P 500 exposure at 0.0945%.
- Overlap: they share top holdings (MSFT, AAPL, NVDA, AMZN, META), so owning both adds less diversification than it appears.
- Cost: 0.03% vs 0.0945%, a small but compounding difference.
The bottom line: VOO vs SPY
VOO and SPY track the same index (S&P 500), so this comes down to cost (0.03% vs 0.0945%), issuer, and structure rather than what you own. They overlap heavily, so owning both mostly doubles a fee. Walnut can show the overlap against your real portfolio before you decide.
Build a portfolio around VOO with Walnut
Walnut connects your real brokerage so you can see how VOO and SPY overlap with what you already own, analyze either by chatting through Claude or ChatGPT, and place any trade yourself.
FAQ
What is the difference between VOO and SPY?
+
VOO tracks S&P 500 (0.03% expense ratio); SPY tracks S&P 500 (0.0945%). They track the same index, so the differences are cost, structure, and issuer.
Is VOO or SPY cheaper?
+
VOO charges 0.03% and SPY charges 0.0945% as of early 2026. Over decades the cheaper fund keeps more of your return, but verify current figures with each issuer.
Do VOO and SPY hold the same stocks?
+
They overlap meaningfully: shared top holdings include MSFT, AAPL, NVDA, AMZN, META, GOOGL. Owning both can mean less diversification than it looks.
Which has a higher dividend yield, VOO or SPY?
+
VOO yields about ~1.3% and SPY about ~1.3% (early 2026, approximate). If income matters, that gap is one input, but total return and cost matter more for most long-term investors.
Should you own both VOO and SPY?
+
Often not, because they overlap heavily (MSFT, AAPL, NVDA, AMZN and more), so holding both adds cost without much extra diversification. Walnut can show the overlap against your real portfolio.
Walnut is informational, not investment advice. ETF figures are approximations stamped to early 2026; verify current data with each issuer before deciding. Nothing here is a recommendation.