When it comes to investing in the S&P 500, two popular options are the VOO and SPY exchange-traded funds (ETFs). Both funds track the performance of the S&P 500 index, which is made up of 500 of the largest publicly traded companies in the United States.
One key difference between VOO and SPY is their expense ratios. VOO has a slightly lower expense ratio compared to SPY, which means that investors may pay slightly less in fees when investing in VOO.
Another difference is the way these ETFs are structured. VOO is managed by Vanguard, while SPY is managed by State Street Global Advisors. This can lead to differences in how the funds are managed and any potential tax implications for investors.
In terms of performance, both VOO and SPY have historically tracked the S&P 500 index very closely. However, there may be slight differences in performance due to the funds’ expense ratios and how they are structured.
Ultimately, the decision between VOO and SPY will depend on individual investor preferences and investment goals. Both funds offer a convenient way to invest in the S&P 500 index, providing exposure to some of the largest and most well-known companies in the U.S.