VOO vs SPY: Same 500 Stocks, $21K Fee Gap Exposed (2026)

VOO and SPY hold the exact same stocks. They track the exact same index — the S&P 500. They deliver the exact same returns. Yet one of them quietly costs more every single year. This VOO vs SPY comparison breaks down the real numbers — including year-by-year performance, risk metrics, and a calculator that shows exactly how much the fee gap costs over 20 and 30 years.

If you own SPY in a long-term portfolio, you might be paying thousands more than necessary for identical exposure.

For a full deep dive into VOO as a standalone investment, see our VOO ETF review. Also considering the total U.S. market? Our VTI vs VOO comparison covers that decision.

VOO vs SPY — At a Glance

When you buy an ETF, you pay an annual fee called the expense ratio. It’s a small percentage that gets deducted from your returns every year — no bill, no notification. Here’s how the two most popular S&P 500 ETFs compare in the VOO vs SPY matchup:

Data as of early 2026. Sources: Vanguard, State Street, Yahoo Finance

Same index. Same stocks. Same returns. But the VOO vs SPY fee gap is real: SPY charges over 3× higher fees than VOO. On $10,000, that’s a $6.45 gap per year. Sounds harmless — until you see what happens over 20 or 30 years. Fees compound against you, just like returns compound for you.

*The S&P 500 has 500 companies, but some (like Alphabet) have multiple share classes, so actual holding counts vary slightly — VOO lists around 507, SPY around 503. The underlying exposure is identical.

Why Is VOO Cheaper Than SPY?

VOO is managed by Vanguard. Vanguard has a unique corporate structure: it’s owned by its fund shareholders. No outside stockholders demanding profits. No pressure to maximize margins. The incentive is to keep costs as low as possible for the people who actually invest.

SPY is managed by State Street Global Advisors, a publicly traded company (ticker: STT). They have shareholders. They have profit targets. That 0.0945% expense ratio isn’t an accident — it’s a business decision.

There’s a structural difference, too. SPY launched in 1993 as a Unit Investment Trust (UIT) — an older structure that can’t reinvest dividends internally or lend out securities. VOO is a modern open-end ETF with more flexibility. Over decades, SPY’s UIT limitations cost investors a few extra basis points in drag that don’t show up in the expense ratio. This structural gap is another reason the VOO vs SPY comparison tilts so heavily toward VOO for long-term holders.

Both companies are reputable. Both funds work fine. But when two products deliver identical results, the rational choice is the one that takes less money out of your pocket. The market seems to agree: VOO overtook SPY as the world’s largest ETF by assets under management in early 2025 — investors are voting with their dollars. In this race, the cheaper fund is winning. (This is a different dynamic from the SCHD vs VOO debate, where the two funds hold completely different stocks and serve different goals.)

Year-by-Year Total Return — VOO vs SPY

Since both funds track the same index, their annual returns are nearly identical. The small differences come from fee drag and minor tracking variations. The performance table below confirms there is no return advantage to paying more.

Total returns include dividends reinvested. Source: Yahoo Finance

VOO wins or ties in 10 out of 11 years. The one exception is 2020, where SPY edged ahead by 0.08 percentage points — likely due to slight tracking differences during the volatile COVID recovery. The VOO vs SPY gap typically ranges from 0.03 to 0.17 percentage points in VOO’s favor. That’s the expense ratio difference showing up in real returns. Over any single year, it’s barely noticeable. Over a decade of compounding, it adds up.

The $10K Growth Test — VOO vs SPY

On a simple $10K lump sum, the gap looks modest — about $530 over 15 years. But the real VOO vs SPY cost emerges when you contribute monthly. That’s where fees really compound.

With $10,000 initial + $500/month at 8% return over 20 years, VOO grows to roughly $342,390 while SPY reaches about $339,427. That’s approximately a $2,960 difference — purely from fees.

Stretch to 30 years with $1,000 monthly contributions and the VOO vs SPY gap widens to over $21,000. That’s a family vacation, a year of tuition, or a chunk of a down payment — gone because of the wrong ticker symbol.

Interactive Fee Calculator

Plug in your own numbers below. The VOO vs SPY fee calculator shows exactly how much the 0.0645% gap costs you over your specific time horizon.

Risk Profile — Identical, As Expected

Sources: PortfoliosLab

The risk numbers confirm the obvious: VOO and SPY carry identical risk because they hold identical stocks. Same drawdowns, same volatility, same beta. The only difference is the Sharpe ratio — VOO’s is marginally higher (0.78 vs 0.77) because lower fees mean slightly better risk-adjusted returns. In the VOO vs SPY risk comparison, there is no trade-off. Lower cost, same risk.

Dividends — Same Yield, Different Mechanics

Both VOO and SPY yield approximately 1.10-1.11%, paying quarterly dividends from the same underlying S&P 500 companies. The VOO vs SPY income you receive is virtually identical.

The mechanical difference: VOO can reinvest dividends internally between distribution dates, keeping more capital working in the market. SPY’s UIT structure must hold dividends as cash until the quarterly payout — a minor drag that shows up in slightly lower total returns over time. For most investors, this VOO vs SPY dividend difference is negligible. But over 20-30 year horizons, every basis point compounds.

If income is your primary goal, neither VOO nor SPY is the right fund. SCHD at 3.35% yield provides 3× the income of either S&P 500 fund. The SCHD vs VOO comparison covers that decision in detail.

SPY’s Liquidity Advantage — Who Actually Needs It?

SPY has the highest trading volume of any ETF in the world — averaging over $50 billion per day. That means tighter bid-ask spreads and faster execution. For day traders moving in and out of positions multiple times a day, that liquidity makes a real difference. But for the vast majority of investors, the VOO vs SPY liquidity argument is a distraction.

But investing $500 a month for retirement is not day trading. Buy-and-hold investors don’t care about bid-ask spreads measured in fractions of a penny. They care about what their portfolio looks like in 20 years.

For long-term investors, SPY’s liquidity advantage is irrelevant. VOO’s fee advantage is not. That’s the core of the VOO vs SPY decision for most people.

📈 VOO vs SPY — Live Price Comparison

Two lines, nearly identical — the only difference is how much you pay to hold them.

What to Do If You Currently Hold SPY

SPY holders in long-term accounts should consider switching. The VOO vs SPY switch is straightforward: in a tax-advantaged account (IRA, 401k, Roth IRA), selling SPY and buying VOO has no tax consequences. Same S&P 500 exposure, lower annual cost, done.

In a taxable account, check unrealized capital gains first. Sitting on large gains means the tax hit from selling might outweigh the fee savings. In that case, keep existing SPY shares but direct all new contributions to VOO.

Either way, the VOO vs SPY choice for new money is clear — there’s no reason to keep buying new shares of SPY for a long-term portfolio when VOO exists at a third of the cost. For adding dividend income alongside an S&P 500 core, SCHD pairs well with VOO thanks to minimal overlap in top holdings.

VOO vs SPY — The Verdict

VOO vs SPY — The Numbers That Matter

S&P 500 & ETF Deep Dives

Common Questions About VOO and SPY