Vanguard’s S&P 500 ETF charges one-third the fees of State Street’s rival, adding a 0.06 percentage point cost advantage for long-term investors.
Vanguard’s S&P 500 ETF (VOO) now offers a 0.03% expense ratio, undercutting State Street’s SPDR S&P 500 ETF Trust (SPY) by two-thirds. The 0.06 percentage point difference in fees can compound significantly over decades for buy-and-hold investors.
Both funds track the S&P 500 but differ in structure and scale. VOO holds 505 positions, launched in 2010, and carries a 1.1% dividend yield, slightly above SPY’s. Top holdings include Nvidia (7.85%), Apple (6.45%), and Microsoft (4.9%), with technology comprising 35% of sector exposure.
The fund’s trailing-12-month dividend stands at $7.13 per share, reflecting its cost efficiency and yield advantage over its larger rival.