VOO becomes the first ETF to surpass $1 trillion in assets while charging 3 basis points, compared to SPY’s 9.45 basis points.
The Vanguard S&P 500 ETF (VOO) has reached $1.03 trillion in assets, marking the first time an ETF has crossed the $1 trillion threshold. VOO charges 3 basis points in fees, significantly undercutting the SPDR S&P 500 ETF Trust (SPY), which charges 9.45 basis points for identical S&P 500 exposure.
SPY, launched on January 23, 1993, remains the most-traded ETF globally with $9.8 billion in assets, driven by deep liquidity and institutional preference. However, its higher fees and potential capital gains tax implications for taxable accounts have made VOO an increasingly attractive alternative.
Despite VOO’s cost advantage, SPY’s established liquidity and options market continue to sustain its dominance, particularly for traders executing short-dated options or block trades.