S&P 500 ETF Comparison: SPY vs VOO vs IVV
Direct answer: The three major S&P 500 ETFs are SPY (SPDR, 0.0945%), VOO (Vanguard, 0.03%), and IVV (iShares, 0.03%). For long-term investors, VOO and IVV are better due to lower fees and open-end fund structure that reinvests dividends. SPY offers superior liquidity for traders. Over 10 years, the 0.065% annual fee difference between SPY and VOO compounds to approximately 0.65% total return difference.
S&P 500 ETF Feature Comparison
| Feature | SPY | VOO | IVV |
|---|---|---|---|
| Expense Ratio | 0.0945% | 0.03% | 0.03% |
| AUM | ~$575B | ~$530B | ~$560B |
| Inception | Jan 1993 | Sep 2010 | May 2000 |
| Structure | Unit Investment Trust | Open-End Fund | Open-End Fund |
| Dividend Handling | Held as cash, distributed quarterly | Reinvested until distribution | Reinvested until distribution |
| Options Chain | Extremely deep | Deep | Moderate |
| Avg Daily Volume | ~100M shares | ~20M shares | ~12M shares |
| 10-Year Return (approx) | Slightly lower due to fee | Best | Best (tied with VOO) |
Source: SPDR: SPY ETF Facts. Last verified: September 2026.
Frequently asked questions
Should I choose SPY, VOO, or IVV?
For most long-term buy-and-hold investors, VOO or IVV are better due to lower expense ratios (0.03% vs 0.0945% for SPY). The annual fee difference is small in absolute terms but compounds over decades: on $100,000 over 20 years at 10% growth, the 0.065% fee difference costs approximately $1,500. For institutional traders, options traders, or those needing maximum liquidity and the deepest options chain, SPY is superior. Both VOO and IVV hold dividends in an internal cash account until distribution (monthly for IVV, quarterly for VOO), meaning neither reinvests dividends mid-quarter, limiting a small tracking difference.
What is a unit investment trust vs. open-end fund ETF?
SPY's UIT structure was required under SEC rules when it launched in 1993. UITs cannot reinvest dividends (they hold cash until distribution), cannot lend securities (a small income source for open-end ETFs), and cannot use futures/derivatives to manage index tracking. Open-end ETFs like VOO and IVV can do all three, giving them small structural advantages that partially offset their lower fees. The net effect is that IVV and VOO typically track the S&P 500 slightly better than SPY over time. For practical purposes, the difference is very small for individual investors.
Are there even cheaper S&P 500 ETFs?
Yes. Fidelity ZERO Large Cap Index Fund (FNILX) charges 0.00% but is available only at Fidelity and is not technically an ETF (it is a mutual fund). Schwab S&P 500 Index Fund (SWPPX) charges 0.02%. However, both are mutual funds, not ETFs, so they trade at end-of-day NAV rather than intraday. Among true ETFs, 0.03% at VOO, IVV, and Schwab's SCHX (0.03%, broader market) is the current floor for liquid, large-scale S&P 500 exposure.