Fund face-off

VOO vs SPY: which is better for you?

Updated October 8, 2026 · 4 min read · By the Compound Wealth Calc team

VOO and SPY both follow the S&P 500, so they own the same companies. The real differences are cost and who they're built for.

The short answer

For most long-term investors, VOO is the better pick because it costs less (0.03% vs about 0.09%). SPY is mainly favored by traders because it trades the most shares each day.

VOO vs SPY at a glance

	VOO	SPY
Made by	Vanguard	State Street
Type	ETF	ETF
Follows	S&P 500	S&P 500
What it owns	about 500 large U.S. companies	about 500 large U.S. companies
Yearly fee	0.03%	0.09%
Dividend yield (approx.)	1.3%	1.2%
10-year yearly return (approx.)	13.5%	13.4%
Typical swings	Medium	Medium

Returns and yields are rounded estimates through mid-2026. Fees are each fund's yearly expense ratio.

What is VOO?

VOO follows the S&P 500, a list of about 500 of the biggest U.S. companies across every industry. It's one of the cheapest and most popular ways to own the U.S. stock market.

What is SPY?

SPY started in 1993 and was the first U.S. ETF. It follows the same S&P 500 list as VOO. It trades more shares each day than almost any fund, which is why short-term traders love it.

Growth: $200 every paycheck

Here's what $200 every two weeks could grow to at each fund's approximate 10-year yearly return:

After	VOO	SPY
10 years	$104,367	$103,816
20 years	$474,641	$468,903
30 years	$1,788,296	$1,752,789

Because they follow the same index, their returns are almost identical. Small gaps come from fees and rounding.

Fees

Yearly fee	VOO	SPY
Per $10,000 invested	$3	$9
On the 30-year balance	$536	$1,578

Lower fees leave more money growing for you. See why small fees add up.

Dividends

	VOO	SPY
Dividends a year on the 30-year balance	$23,248	$21,033

Risk

VOO's typical swings are medium, and SPY's are medium. Funds that hold fewer kinds of companies tend to rise and fall more. The best fund is one you can hold through a bad year without selling.

Which one fits you?

Pick VOO if you're investing for the long run and want the lowest fee.
Pick SPY if you trade often or use options, where SPY's huge trading volume helps.

Put VOO and SPY side by side with your own paycheck amount.

Compare them

Quick answers

Is VOO better than SPY?

For most long-term investors, VOO is the better pick because it costs less (0.03% vs about 0.09%). SPY is mainly favored by traders because it trades the most shares each day.

Which has lower fees, VOO or SPY?

VOO charges 0.03% a year and SPY charges 0.09%. VOO is cheaper.

Which pays more dividends, VOO or SPY?

VOO has paid about 1.3% a year and SPY about 1.2%. Yields change over time.

Do VOO and SPY own the same stocks?

Yes. Both follow the S&P 500, so they hold the same companies in almost the same amounts.

Keep learning

This article is for learning only. It is not financial, tax or legal advice. Example returns are not promises. Talk to a licensed professional about your own situation.