Is it better to buy VOO or SPY?

Written by Editorial Team | Last Updated: August 2026

Choosing between the Vanguard S&P 500 ETF and the SPDR S&P 500 ETF depends primarily on your investment strategy and holding period. Both funds track the exact same S&P 500 index, holding identical large-cap U.S. equities in the same proportions, meaning their underlying performance is virtually identical. However, VOO features a slightly lower expense ratio, making it the superior, cost-effective choice for long-term buy-and-hold investors and retirement portfolios. SPY, by contrast, boasts the highest trading volume and liquidity in the world, making it the preferred instrument for active options traders and institutional day traders who require tight bid-ask spreads.

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