When it comes to choosing between Warren Buffett’s ETFs, SPY and VOO, investors may find themselves at a crossroads. Both of these exchange-traded funds provide exposure to a diversified portfolio of stocks, but there are some key differences to consider.
SPY, also known as the SPDR S&P 500 ETF, tracks the performance of the S&P 500 index. This means investors are essentially investing in the 500 largest publicly traded companies in the United States. On the other hand, VOO, the Vanguard S&P 500 ETF, also mirrors the S&P 500 index but comes with a lower expense ratio compared to SPY.
In terms of performance, both ETFs have historically provided investors with solid returns over the long term. However, some investors may prefer VOO for its lower costs, which can have a positive impact on overall returns over time.
Ultimately, the decision between SPY and VOO comes down to individual preferences and investment goals. Some investors may prioritize lower expenses, while others may prefer the familiarity and liquidity of SPY. It’s important to carefully evaluate each ETF’s characteristics and determine which one aligns best with your investment strategy.