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For most long-term investors, VOO and IVV are the best default S&P 500 ETFs. Both track the standard, market-cap-weighted S&P 500 Index and charge 0.03%. SPYM has the lowest stated expense ratio at 0.02%, while SPY is usually the better tool for frequent trading, large orders, hedging, and options because of its exceptionally deep trading ecosystem.
This comparison covers U.S.-listed, unleveraged ETFs that seek to track the standard S&P 500—not Canadian, U.K., European UCITS, Australian, leveraged, inverse, covered-call, sector, growth, value, or equal-weight funds. Figures are snapshots from official sources, with the relevant date shown; assets, spreads, holdings, fees, and broker features can change.
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The quick comparison
| Use case | Best fit | Why |
|---|---|---|
| Long-term buy-and-hold | VOO or IVV | Both track the same standard S&P 500 Index at a 0.03% expense ratio. |
| Lowest stated fee | SPYM | Its 0.02% expense ratio is the lowest among the four major U.S.-listed, unleveraged S&P 500 ETFs covered here. |
| Frequent trading, large orders, or options | SPY | It has the deepest trading and options ecosystem, although its 0.0945% fee is much higher. |
| Less mega-cap concentration | An equal-weight strategy such as RSP | Equal weighting changes the portfolio materially, so it is an alternative strategy—not a standard S&P 500 tracker. |
There is no universal winner. The right choice depends mainly on whether you are building a core holding or using the ETF as a trading and options instrument.
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What an S&P 500 ETF actually owns
The S&P 500 is a large-cap U.S. equity index made up of 500 constituent companies. It uses float-adjusted market-capitalization weighting, meaning the largest publicly available companies have the greatest influence on the index’s performance. The index methodology is maintained by S&P Dow Jones Indices; its construction and weighting rules are described in the S&P U.S. Indices Methodology and Index Mathematics Methodology.
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“500 companies” does not mean 500 equally sized positions. A market-cap-weighted fund can have substantial exposure to a relatively small number of mega-cap companies. As of June 30, 2026, the top 10 holdings represented 37.9% of VOO’s net assets and 36.37% of IVV’s portfolio. Those percentages change as share prices and index constituents change.
An ETF may report more than 500 securities even though it tracks an index of 500 constituent companies. Multiple share classes, cash, futures, and temporary portfolio positions can affect the fund’s holding count. For example, VOO reported 506 stocks compared with 503 index holdings as of June 30, 2026; IVV reported 504 holdings on the same date.
The S&P 500 is therefore a useful large-cap U.S. stock-market proxy, but it is not the entire U.S. market and is not a complete portfolio by itself. It does not inherently provide dedicated small-cap, international-stock, bond, or cash exposure.
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The table below uses dated official fund snapshots rather than pretending that assets, spreads, or holdings are permanently fixed.
| ETF | Fund | Expense ratio | Inception | Official scale snapshot | Structure and trading notes | Main caveat |
|---|---|---|---|---|---|---|
| SPYM | State Street SPDR Portfolio S&P 500 ETF | 0.02% | Nov. 8, 2005 | $167.53 billion AUM, Aug. 6, 2026 | Broad S&P 500 exposure; options available; official page reported 505 holdings. | Formerly SPLG; linked historical benchmarks were not always the S&P 500. |
| VOO | Vanguard S&P 500 ETF | 0.03% | Sept. 7, 2010 | $978.96 billion ETF assets, June 30, 2026 | ETF share class of Vanguard 500 Index Fund; full replication. | Costs one basis point more than SPYM, a small difference for most investors. |
| IVV | iShares Core S&P 500 ETF | 0.03% | May 15, 2000 | $904.16 billion net assets, Aug. 7, 2026 | Open-end ETF listed on NYSE Arca; 0.01% 30-day median bid/ask spread as of Aug. 7, 2026. | No meaningful ordinary-investor advantage over VOO, but a strong alternative. |
| SPY | State Street SPDR S&P 500 ETF Trust | 0.0945% | Jan. 22, 1993 | $805.19 billion AUM, Aug. 6, 2026 | Unit investment trust; the oldest U.S.-listed ETF and the deepest trading and options market in this group. | Its annual fee is substantially higher than the other three funds. |
See the Vanguard VOO profile, iShares IVV page, State Street SPYM page, and State Street SPY page for current fund information.
VOO and IVV: the practical tie for long-term investors
VOO and IVV are the best default choices for many investors saving for the long term. They track the same standard S&P 500 Index, charge the same 0.03% expense ratio, have enormous scale, and have produced very similar index-tracking results.
Why VOO is a strong default
- It tracks the standard S&P 500 rather than a specialized version of the index.
- It charges 0.03% and uses full replication, holding stocks in index-like capitalization weights.
- It is an ETF share class of Vanguard 500 Index Fund.
- Its June 30, 2026 fact sheet showed a 15.47% annualized 10-year NAV return versus 15.51% for the benchmark.
The small difference between VOO’s return and the benchmark is consistent with expenses and implementation effects. It does not indicate a fundamentally different investment strategy. VOO’s official information is available through its fund profile and June 30, 2026 investment profile.
VOO is particularly convenient for investors who prefer Vanguard, are making recurring long-term purchases, or want a highly established low-cost core holding. It is not objectively superior to IVV merely because it is popular.
Why IVV is an equally strong choice
- It tracks the same standard S&P 500 Index.
- It charges 0.03%.
- It launched in 2000 and had $904.16 billion in net assets as of Aug. 7, 2026.
- Its reported 30-day median bid/ask spread was 0.01% as of Aug. 7, 2026.
- Its June 30, 2026 fact sheet showed a 15.47% annualized 10-year NAV return versus 15.50% for the benchmark.
IVV is a sensible choice for an iShares or BlackRock investor, someone whose brokerage makes it especially convenient, or anyone who already owns it and is considering a switch only because a comparison article ranked VOO slightly higher. The small historical differences between VOO and IVV can reflect dates, rounding, dividend timing, market-price versus NAV returns, and ordinary implementation variation. They are not reliable evidence of a durable winner.
Practical rule: If you already own VOO or IVV in a taxable account, there is usually no investment reason to sell solely to exchange it for the other. Selling can realize a capital gain, and both funds provide essentially the same standard S&P 500 exposure.
SPYM: the lowest-fee standard S&P 500 ETF
SPYM is the fee leader in this comparison. Its stated expense ratio is 0.02%, compared with 0.03% for VOO and IVV and 0.0945% for SPY. State Street identifies SPYM as the lowest-cost member of the four major U.S.-listed, unleveraged S&P 500 ETFs covered here.
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SPLG is now SPYM
Older articles may call this fund SPLG. State Street rebranded and renamed the fund SPYM in 2025. SPLG should not be counted as a separate current competitor alongside SPYM. The fund’s history matters, however, because its benchmark history was not exclusively the S&P 500.
SPYM’s historical-return caveat
SPYM’s official performance table links different benchmarks over time:
- Dow Jones U.S. Large-Cap Total Stock Market Index through July 9, 2013;
- Russell 1000 Index from July 9, 2013, through Nov. 16, 2017;
- SSGA Large Cap Index from Nov. 16, 2017, through Jan. 24, 2020; and
- S&P 500 Index from Jan. 24, 2020, onward.
That means SPYM’s 10-year or since-inception return is not a pure historical S&P 500 record. It can still be a valid standard S&P 500 choice today, but it should not be ranked against VOO, IVV, or SPY using lifetime returns as though all four funds had tracked exactly the same benchmark for their entire histories. Check the official SPYM performance page before making a current comparison.
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SPY: the trading and options specialist
SPY is usually the best S&P 500 ETF for active trading, options, tactical hedging, and very large orders—not for minimizing long-term holding costs.
Launched on Jan. 22, 1993, SPY was the first U.S.-listed ETF. It had $805.19 billion in assets under management as of Aug. 6, 2026. State Street describes it as the world’s most traded ETF, and Cboe reported that SPY represented 42% of ETF options volume in the second quarter of 2026. Trading leadership and options-market shares can change, so these claims should be understood as dated observations rather than permanent guarantees.
SPY’s main disadvantage is its 0.0945% expense ratio. That is more than three times the 0.03% fee charged by VOO and IVV. On $100,000, the stated annual cost is approximately $94.50 for SPY versus $30 for either VOO or IVV—a difference of about $64.50 per year before considering trading costs, securities-lending revenue, taxes, or tracking differences.
The higher fee can be justified when execution quality is more important than the annual fund charge. Examples include:
- frequent purchases and sales;
- large block orders;
- short-term tactical trades;
- options strategies requiring deep open interest and tight execution; and
- hedging or other institutional-style transactions.
For someone investing $500 or $5,000 once a month, SPY’s liquidity advantage may not produce enough benefit to offset its higher ongoing fee. VOO, IVV, and SPYM can be sufficiently liquid for many ordinary market-hour purchases, particularly when the investor uses a limit order and checks the spread.
How much do the fees cost?
Expense ratios are deducted from the fund’s assets. You do not receive a separate bill, but the fee reduces the return retained by the fund over time.
| Investment | SPYM at 0.02% | VOO or IVV at 0.03% | SPY at 0.0945% |
|---|---|---|---|
| $10,000 | About $2 per year | About $3 per year | About $9.45 per year |
| $100,000 | About $20 per year | About $30 per year | About $94.50 per year |
On $100,000, SPYM costs approximately $10 less per year than VOO or IVV. SPY costs approximately $64.50 more than either 0.03% fund and approximately $74.50 more than SPYM. These are simple estimates based on the stated expense ratios; actual investor outcomes can differ because of trading costs, tracking differences, tax effects, securities lending, and changes in fund fees.
The difference between 0.02% and 0.03% is not meaningless, especially on a large balance held for decades. It is simply too small, by itself, to establish that SPYM is the best fund for every investor.
Costs beyond the expense ratio
The expense ratio is only one part of an ETF’s total cost. The SEC’s ETF fee guidance notes that transaction costs may not appear in the fund’s expense ratio or fee table.
Bid-ask spreads
The bid is the price at which a buyer is willing to purchase; the ask is the price at which a seller is willing to sell. The difference is the bid-ask spread. A narrow spread generally reduces the cost of entering or exiting a position, although the spread can widen during volatile markets, outside normal trading hours, or when liquidity is temporarily impaired.
For a monthly buy-and-hold investor, a small spread paid once may be less important than years of expense-ratio differences. For a frequent trader, the spread is paid repeatedly and can matter more than a one-basis-point annual fee difference.
Market impact and commissions
A large order can move the market, particularly if it is placed aggressively or during a thinly traded period. Broker commissions, exchange fees, and any transaction charges also depend on the brokerage and can change. “Commission-free” is not a universal property of an ETF; verify the current terms at your broker.
Premiums and discounts to NAV
ETF shares trade on an exchange throughout the day. Their market price can be above or below the fund’s net asset value, or NAV. The SEC’s ETF Investor Bulletin explains that investors can buy at a premium or sell at a discount to NAV.
In highly liquid funds, premiums and discounts are often small, but they can widen during market stress. Practical steps include:
- use a limit order when the execution price matters;
- check the bid-ask spread before submitting the order;
- avoid judging a fund from one intraday quote; and
- remember that the displayed market price is not necessarily identical to NAV.
Tracking difference
A fund’s return can differ from the index because of:
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- the expense ratio;
- portfolio replication or sampling choices;
- trading costs and cash drag;
- securities-lending revenue;
- index rebalancing;
- dividend timing;
- tax treatment; and
- the difference between market-price and NAV returns.
When comparing funds, use NAV total returns and the benchmark total return for identical periods. Do not compare one fund’s market-price return with another fund’s NAV return, or mix performance periods with different end dates. Official performance tables from Vanguard, iShares, and State Street distinguish these measures.
Structural differences: SPY versus VOO and IVV
SPY is organized as a unit investment trust. VOO is an ETF share class of Vanguard 500 Index Fund, and IVV is an open-end ETF. The relevant filings are available from the SPY prospectus, VOO filing, and IVV filing.
The structural difference helps explain why SPY has certain operational features, but it does not make SPY unsafe or unsuitable. For a passive buy-and-hold investor, the more visible practical differences are generally the higher SPY fee and its exceptional trading and options liquidity.
Do not assume that the structure alone guarantees a tax advantage for VOO or IVV. Actual tax results depend on distributions, realized gains, tax lots, account type, and the investor’s circumstances.
Tax considerations by account type
Taxable brokerage accounts
ETFs can often limit capital-gains distributions because authorized participants may redeem creation units in kind instead of requiring the fund to sell securities for cash. The SEC describes this as one reason ETFs can be more tax-efficient than comparable mutual funds. That does not make ETFs tax-free: investors can still owe tax on dividends, capital-gains distributions, and gains realized when they sell shares. See the SEC’s mutual-fund and ETF tax-efficiency bulletin.
For a taxable investor choosing among VOO, IVV, SPYM, and SPY, the fund’s current distribution history is only one part of the decision. If you already hold one of these funds, selling to switch can create a taxable capital gain. Compare the immediate tax cost with the expected future fee or execution savings. Do not sell a profitable position merely because a ranking page calls another nearly identical ETF “best.”
IRAs and 401(k)s
Tax efficiency generally matters less inside an IRA or 401(k) because the account’s tax rules—not the ETF’s ordinary taxable-account distribution mechanics—control how income and gains are treated. In these accounts, prioritize the available investment menu, fund expenses, automatic-investing features, plan fees, and any transaction restrictions.
A 401(k) may not offer any of these ETFs. Employer plans often use mutual funds, collective investment trusts, or a restricted brokerage window instead. Whether fractional ETF shares, recurring purchases, options, or commission-free trades are available is broker- and plan-specific.
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Each standard S&P 500 ETF spreads exposure across hundreds of large U.S. companies and multiple sectors. That is meaningful diversification within large-cap U.S. stocks. But it is not equal weighting, and it is not a complete global portfolio.
Because the index is market-cap weighted, its concentration can rise when a small group of companies becomes very valuable. An investor who wants broader diversification could consider combining an S&P 500 fund with:
- a total U.S. market fund for more mid-cap and small-cap exposure;
- international-stock exposure;
- bonds or cash for lower volatility and near-term spending needs; or
- another asset class appropriate to the investor’s plan.
Those are asset-allocation decisions, not evidence that VOO, IVV, SPYM, or SPY is defective as an S&P 500 tracker.
Equal-weight alternatives are not the same investment
An equal-weight S&P 500 index gives each constituent roughly the same weight instead of assigning the largest weights to the largest companies. An ETF such as RSP can therefore reduce mega-cap concentration and increase the relative influence of smaller companies within the S&P 500 universe.
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- company and sector exposures;
- portfolio concentration;
- rebalancing frequency and turnover;
- volatility and return behavior; and
- fees and tax considerations.
For that reason, RSP belongs in an alternative-strategy discussion, not in a ranking of standard market-cap-weighted S&P 500 ETFs. S&P Dow Jones Indices treats equal weighting as a distinct index methodology.
How to choose your fund in five steps
- Confirm the benchmark. Make sure the fund tracks the standard S&P 500 Index, not an S&P 500 growth, value, low-volatility, high-dividend, covered-call, or equal-weight version. A fund name containing “S&P 500” is not enough; review the official benchmark description.
- Decide whether you are investing or trading. For recurring long-term purchases, VOO, IVV, and SPYM are the relevant choices. For frequent trading, large orders, or options, SPY’s execution ecosystem may justify its higher fee.
- Compare current expense ratios. Based on the official snapshots used here, SPYM is 0.02%, VOO and IVV are 0.03%, and SPY is 0.0945%. Check the current prospectus before investing.
- Check total trading cost. Review the live bid-ask spread, order size, market conditions, commissions, and any premium or discount to NAV. Use a limit order when appropriate.
- Consider taxes and account functionality. In a taxable account, include the tax cost of selling existing tax lots. In an IRA, 401(k), or brokerage account, verify whether the broker or plan supports recurring purchases, fractional shares, options, and any applicable transaction features.
Common mistakes to avoid
“SPYM is one basis point cheaper, so it must be the winner.”
SPYM is the fee leader, but one basis point is approximately $10 per year on $100,000. A wider spread, poor execution, a taxable sale, or a broker limitation can outweigh that difference. Its linked historical benchmark also was not exclusively the S&P 500.
“SPY is the most liquid, so everyone should buy it.”
SPY’s trading and options liquidity is a genuine advantage, especially for active and institutional-style transactions. But its 0.0945% expense ratio is substantially higher. A small monthly investor may not benefit enough from the liquidity premium to justify paying it year after year.
“VOO and IVV have slightly different returns, so one is clearly superior.”
Small differences can result from measurement dates, NAV versus market-price returns, dividend timing, rounding, and implementation effects. Both currently track the same benchmark at the same stated expense ratio. They are a practical tie for most long-term investors.
“The lower share price is the cheaper ETF.”
An ETF’s nominal share price says little about its value or cost. Share prices reflect fund history and splits. Compare percentage expenses, portfolio exposure, spreads, tax consequences, and broker functionality. Fractional-share availability is broker-specific.
“Owning VOO, IVV, and SPY diversifies me.”
Standard versions of all three funds track the same companies using the same market-cap-weighting concept. Holding several usually adds paperwork and tax lots rather than meaningful asset diversification. One standard S&P 500 ETF is generally enough for that particular exposure.
“The S&P 500 is my complete portfolio.”
It is a large-cap U.S. stock index, not a complete global allocation. Whether it is sufficient depends on your desired exposure to mid- and small-cap stocks, international stocks, bonds, cash, and other assets.
Methodology and update note
This comparison screens the major U.S.-listed, unleveraged ETFs seeking to track the standard, market-cap-weighted S&P 500 Index: SPYM, VOO, IVV, and SPY. Leveraged, inverse, covered-call, sector, value, growth, low-volatility, high-dividend, and equal-weight funds are excluded from the standard-tracker ranking.
Fees, benchmark descriptions, structures, and fund characteristics were taken from official fund pages, prospectuses, and fact sheets. Index construction was checked against S&P Dow Jones Indices, while ETF mechanics and tax explanations were checked against Investor.gov. Assets, holdings, spreads, performance, and options-volume statistics are dated snapshots—not live quotes or permanent rankings.
The main conclusion is intentionally use-case driven: VOO and IVV are the practical long-term co-winners; SPYM is the fee leader; and SPY is the specialist vehicle for trading and options.
Frequently Asked Questions
Is VOO better than IVV?
Not for most investors. VOO and IVV track the same standard S&P 500 Index and both charge 0.03%. Small historical return differences can reflect dates, rounding, dividend timing, and NAV-versus-market-price measurement. Choose based on broker convenience, existing holdings, and personal preference rather than expecting a durable performance advantage.
Is SPY worth its higher expense ratio?
It can be for frequent traders, large orders, tactical hedging, and options users who value SPY’s exceptionally deep trading and options ecosystem. For ordinary long-term investors, the 0.0945% fee is usually difficult to justify when VOO and IVV charge 0.03% and SPYM charges 0.02%.
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SPYM is the renamed and rebranded successor to the former SPLG ticker. It should not be counted as a separate current competitor. Its historical performance requires a caveat because the fund used several linked benchmarks before tracking the S&P 500 beginning Jan. 24, 2020.
Should I own VOO and IVV together?
Usually not for diversification. Standard VOO and IVV provide substantially the same S&P 500 exposure. Owning both generally creates extra tax lots and account complexity without adding a meaningfully different asset class or strategy.
Which S&P 500 ETF is best for a taxable account?
For a new long-term purchase, VOO, IVV, or SPYM can be reasonable low-cost choices. The key factors are current fees, tracking, distributions, broker functionality, and your tax situation. If you already own a comparable fund with an unrealized gain, selling solely to switch can create a tax bill that outweighs the expected savings.
Which S&P 500 ETF is best for an IRA?
VOO, IVV, or SPYM can all work for standard long-term exposure, subject to the account’s available investments and trading features. Taxable-account ETF-efficiency differences generally matter less inside an IRA. SPY is more relevant if you specifically use options or active trading.
Which S&P 500 ETF is best for options?
SPY is generally the specialist choice because of its deep options ecosystem and large trading market. Options availability and approval are broker-specific, and the best instrument can depend on strike selection, expiration, open interest, spreads, and the exact strategy.
Does an ETF’s share price matter?
No. A lower share price does not make a fund cheaper or likely to earn a better return. Share prices reflect fund history and splits. Compare the percentage expense ratio, portfolio exposure, trading costs, and whether your broker supports fractional shares.
Are S&P 500 ETFs diversified?
They are diversified across hundreds of large-cap U.S. companies, but they are not equally weighted. The largest companies can represent a substantial portion of the portfolio. They also do not automatically provide international, bond, cash, or dedicated small-cap exposure.
Is an equal-weight ETF the same as the S&P 500?
No. An equal-weight ETF such as RSP may hold the same general company universe, but it gives each company approximately the same weight rather than weighting companies by float-adjusted market capitalization. That produces different sector exposure, turnover, volatility, and performance.
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Can I buy these ETFs in a 401(k)?
Only if the employer plan or its brokerage window offers them. Many 401(k) plans use a restricted menu of mutual funds or collective investment trusts instead. Check the plan’s current investment menu, fees, and trading rules.
What happens if an ETF trades above or below NAV?
You may buy at a premium or sell at a discount relative to the fund’s net asset value. The difference is often small in highly liquid ETFs but can widen during market stress. A limit order can help control the execution price.
Should I use a limit order?
A limit order can be useful when you want to control the maximum purchase price or minimum sale price, particularly in volatile markets, outside the busiest trading periods, or when the spread is wider. It may not execute if the market never reaches your limit.
Does past performance identify the best S&P 500 ETF?
Not reliably. Compare NAV total returns with the benchmark over identical periods, and account for fees, tracking difference, measurement dates, and benchmark changes. SPYM in particular has a linked historical benchmark record that was not exclusively the S&P 500.
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The Bottom Line
Choose VOO or IVV for a straightforward, long-term standard S&P 500 holding. Choose SPYM if the lowest stated fee is your priority and you understand its benchmark history. Choose SPY when trading and options liquidity are worth paying for. If your real concern is mega-cap concentration, look at an equal-weight or broader-market strategy—but recognize that it is a different investment, not a better version of the standard S&P 500.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
